1

Page
Cover Page
Table of Contents
Summary of RFP
Instructions to Proposers
2-3
4-5
6-15
Forms to be completed and submitted with a Bid, as appropriate
Attachment No. 1 Proposal/Contract Award Form
Attachment No. 2 Schedule of Items and Prices (Bank Service Requirements)
Attachment No. 2.1 Other Bank Services
Attachment No. 2.2 Investment Transactions
Attachment No. 2.3 Certificates of Deposit ($100,000 or More)
Attachment No. 3 Scope of Services
Attachment No. 3.1 Bank Accounts
Attachment No. 3.2 Account Analysis Summary
Attachment No. 3.3 Bank Transactions By Account
Attachment No. 3.4 Investment Policy
Attachment No. 3.5 Summary of Investments
Attachment No. 4 General Terms and Conditions
31
32-48
49
50-53
Attachment No. 5 Contact Personnel
Attachment No. 6 Determination of Good Faith Effort Form
Attachment No. 7 Small Business Unavailability Certificate
Attachment No. 8 Small Business Development Questionnaire
Attachment No. 9 Contractor & Subcontractor/Supplier Participation Form 58
Attachment No. 10 Non-Discrimination Statement
Attachment No. 11 Certification & Disclosure Statement
59
60
54
55
56
57
Attachment No. 12 Affidavit Form
Attachment No. 13 Business Questionnaire
Attachment No. 14 Assurance of SBDP Goal
Attachment No. 15 Vendor Application Form
Attachment No. 16 Insurance Requirements
Attachment No. 17 Conflict of Interest Questionnaire
Attachment No. 18 Disclosures - Financial Interest/Potential Conflicts of Interests
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62-63
64
65
66
67
68-71
16-17
18-20
21
22
23
24-28
29
30
BIDDER TO INCLUDE THE FOLLOWING (ADDITIONAL ATTACHMENTS)
Attachment No. 19 Sample Account Analysis
Attachment No. 20 Availability Schedule
Attachment No. 21 Historical Interest Rates
Attachment No. 22 Depository Pledge Agreement
Attachment No. 23 Sample Safekeeping Agreement
Attachment No. 24 Financial Information
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Attachment No. 25 Disaster Recovery and Control
Attachment No. 26 One-Time Setup Fee and Software Fee
Attachment No. 27 Balance Reporting
Attachment No. 28 HCC Employee and Student Bank Benefits
Attachment No. 29 Other Bank Services Proposed
Sample Contract Documents
(The resulting contract will include at least the following documents)
Exhibit A: Bid/Award Form
Exhibit B: Schedule of Items and Prices (Bank Service Requirements)
Exhibit C: Other Bank Services
Exhibit D: Investment Transactions
Exhibit E: Certificates of Deposit $100,000 or More
Exhibit F: Scope of Services
Exhibit G: General Terms and Conditions
Exhibit H: Contractor & Subcontractor/Supplier Participation Form, if appropriate
Exhibit I: Insurance Requirements, if appropriate
Exhibit J: Subcontractor Payment Certification Form, if appropriate
Exhibit H: Subcontractor Progress Assessment Form, if appropriate
16-17
18-20
21
22
23
24-28
50-53
58
66
75
76
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REQUEST FOR PROPOSALS - SUMMARY
Date: September 7, 2010
HOUSTON COMMUNITY COLLEGE
Project Title: Bank Depository Services
Project No.: 10-36
ISSUED BY:
Houston Community College
Operations
3100 Main Street (11 th
Houston,
O.
Floor)
77002
Box
Houston,
SUBMIT INQUIRES TO:
Name: Wanda Pleasant
Project Overview:
Houston Community College (“HCC”) is soliciting proposals from eligible and qualified financial institutions to serve as the Depository Bank for HCC. (Please refer to the Scope of Services, Attachment No. 2.)
Award / Contract Approval:
This Procurement, any award under this procurement, and the resulting contract, if any, is subject to approval by HCC Board of Trustees. Subsequent to Board approval, the only person authorized to commit
HCC contractually is the Chancellor or designee. This solicitation is a request for proposals and neither this solicitation nor the response or proposal from any prospective proposer shall create a contractual relationship that would bind HCC until such time as both HCC and the selected proposer sign a legally binding contract, which includes, without limitation, the terms required by HCC as set forth in Attachment
No. 3.
Pre-Proposal Meeting: __X___Mandatory _____Not mandatory
A pre-proposal meeting will be held at Houston Community College, 3100 Main Street, 2 nd Floor, Seminar
Room A, Houston, Texas 77002 on Monday, September 20, 2010 at 11:00 A.M. (local time).
Proposal Due Date/Time: HCC will accept sealed proposals in original form to provide the required
Bank Depository Services until 3:00 P.M. (local time) on Thursday, September 30, 2010. Proposals will be received in the Procurement Operations Department, 3100 Main Street (11th Floor, Room 11A06),
Houston, Texas 77002.
Contract Term: It is anticipated that the contract term for contract(s) awarded from this solicitation, if any will be for two (2) years, December 1, 2010 through November 30, 2012, with an option to renew no greater than two (2) additional two-year terms.
Obligation and Waivers : This Request for Proposal does not obligate HCC to award a contract or pay any costs incurred by the proposer in the preparation and submittal of a proposal.
HCC, IN ITS SOLE DISCRETION , RESERVES THE RIGHT TO ACCEPT ANY PROPOSAL AND / OR REJECT ANY AND ALL
PROPOSALS OR A PART OF A PROPOSAL , WITHOUT REASON OR CAUSE , SUBMITTED IN RESPONSE TO THIS
SOLICITATION .
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HCC RESERVES THE RIGHT TO REJECT ANY NON RESPONSIVE OR CONDITIONAL PROPOSAL .
HCC RESERVES
THE RIGHT TO WAIVE ANY INFORMALITIES , IRREGULARITIES AND / OR TECHNICALITIES IN THIS SOLICITATION ,
THE PROPOSAL DOCUMENTS AND / OR PROPOSALS RECEIVED OR SUBMITTED .
B Y SUBMITTING A PROPOSAL , PROPOSER AGREES TO WAIVE ANY CLAIM IT HAS , OR MAY HAVE , AGAINST
H OUSTON C OMMUNITY C OLLEGE AND ITS TRUSTEES OR AGENTS ARISING OUT OF OR IN CONNECTION WITH (1)
THE ADMINISTRATION , EVALUATION OR RECOMMENDATIONS OF ANY PROPOSAL ; (2) ANY REQUIREMENTS
UNDER THE SOLICITATION , PROPOSAL PACKAGE , OR RELATED DOCUMENTS ; (3) THE REJECTION OF ANY
PROPOSAL OR ANY PART OF ANY PROPOSAL ; AND / OR (4) THE AWARD OF A CONTRACT , IF ANY .
HCC reserves the right to withdraw this solicitation at any time for any reason; remove any scope component for any reason and to issue such clarifications, modifications and / or amendments as deemed appropriate.
HCC is an equal opportunity/educational institution, which does not discriminate on the basis of race, color, religion, national origin, gender, age or disability.
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INSTRUCTIONS TO PROPOSERS
1.
Introduction
The Houston Community College (the “College” or “HCC”) is requesting applications from eligible and qualified financial institutions to serve as the Depository Bank to the College acting for itself and on behalf of HCC to provide the banking services as described below. The services provided are to be in accordance with the Request for Proposals, including Exhibits and Attachments, duly executed between
HCC and the selected financial institution.
The philosophy incorporated into this Bank Depository Services Contract is to solicit RFPs for banking services currently utilized or open for consideration, based on projected activity and transaction volumes.
HCC intends to invest its funds to maximize interest income as authorized by the HCC Investment Policy and permitted by state law. From this perspective, the rates HCC can earn on its deposits and investments through the financial institution will be an important element in consideration of the net cost/benefit of the relationship to HCC. HCC reserves the right to withdraw, from time to time, any amount of HCC funds on deposit in any HCC account and invest those funds in accordance with HCC’s
Investment Policy.
The Depository Bank is an important component of the treasury and cash management system of HCC.
From this perspective, HCC is seeking a financial institution that
¾ meets the requirements of Subchapter A of Chapter 51, Section 51.003 of the Texas Education
Code;
¾ is capable of providing the services required by HCC at the least possible cost;
¾ is willing to be attentive and responsive to HCC's money matters; and,
¾ is financially sound.
Exceptions, conditions, or qualifications to the provisions of HCC's specifications or requirements must be clearly identified as such, with the reasons therefore, and alternate language proposed by Proposer, if any, clearly stated and inserted into the appropriate place in the RFP submission. Each one of these exceptions, conditions, or qualifications to the College's specifications is to be included, as appropriate, in this Depository Application. Items and matters not explicitly excepted in this manner will be deemed to be in conformance with the College's specifications.
2. Proposal Submittal
Proposer(s) shall submit one (1) original and four (4) copies of the technical proposal including the price proposal to the address shown below by the date and time specified in this solicitation. In addition to the technical and price proposal, each proposer must complete and return the following documents, if appropriate:
• Proposal / Award Form (Attachment No. 1)
• Schedule of Items and Prices/Bank Service Requirements (Attachment No.2)
• Other Bank Services (Attachment No. 2.1)
• Investment Transactions (Attachment No. 2.2)
• Certificates of Deposit $100,000 or More (Attachment No. 2.3)
• Contact Personnel (Attachment No. 5)
• Determination of Good Faith Effort (Attachment No.6)
• Small Business Unavailability Certificate (Attachment No. 7)
• Small Business Development Questionnaire (Attachment No. 8) *** Mail separately.
• Contractor & Subcontractor/Supplier Participation Form (Attachment No. 9)
• Non-Discrimination Statement (Attachment No. 10)
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• Certification & Disclosure Statement (Attachment No. 11)
• Affidavit Form (Attachment No. 12)
• Business Questionnaire (Attachment No. 13)
• Assurance of SBDP Goal (Attachment No. 14)
• Conflict of Interest Questionnaire (Attachment No. 17)
• Disclosures – Financial Interest/Potential Conflicts of Interests (Attachment No. 18)
Attachments to be provided by Proposer
• Sample Account Analysis (Attachment No. 19)
• Availability Schedule (Attachment No. 20)
• Historical Interest Rates (Attachment No. 21)
• Depository Pledge Agreement (Attachment No. 22)
• Sample Safekeeping Agreement (Attachment No. 23)
• Financial Information (Attachment No. 24)
• Disaster Recovery and Control (Attachment No. 25)
• One-Time Setup Fee and Software Fee (Attachment No. 26)
• Balance Reporting (Attachment No. 27)
• HCC Employee and Student Bank Benefits (Attachment No. 28)
• Other Bank Services Proposed (Attachment No. 29)
The envelope containing a proposal shall be addressed as follows:
• Name, Address and Telephone Number of Proposer;
• Project Description/Title;
• Project Number; and
• Proposal Due Date/Time.
All proposals shall be submitted to the following address:
Houston Community College
Procurement Operations
3100 Main Street (11th Floor)
Houston, Texas 77002
Ref: Project No. 10-36
Attn: Wanda Pleasant, Buyer
3. Eligibility for Award
1.
In order for a proposer to be eligible to be awarded the contract, the proposal must be responsive to the solicitation and HCC must be able to determine that the proposer is responsible and has the resources and capacity to perform the resulting contract satisfactorily.
2.
Responsive proposals are those that comply with all material aspects of the solicitation, conform to the solicitation documents and meet the requirements set forth in this solicitation. Proposals, which do not comply with all the terms and conditions of this solicitation will be rejected as nonresponsive. c. Responsible proposers, at a minimum, must meet the following requirements:
• Have adequate financial resources, or the ability to obtain such resources as required during the performance of any resulting contract:
• Be able to comply with the required performance schedule, taking into consideration all existing business commitments:
• Have a satisfactory record of past performance:
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• Have necessary personnel and management capability to perform any resulting contract:
• Be qualified as an established firm regularly engaged in the type of business necessary to fulfill the contract requirements:
• Certify that the firm is not delinquent in any tax owed the State of Texas under Chapter
171, Tax Code; and is not delinquent in taxes owed to the Houston Community College; signing and submitting the proposal is so certifying to such non-delinquency:
• Be otherwise qualified and eligible to receive an award under applicable laws and regulations. d.
Proposer(s) may be requested to submit additional written evidence verifying that the firm meets the minimum requirements described in Section 3 (c) and as necessary to perform the requirements of the solicitation and be determined a responsible proposer. Failure to provide any requested additional information may result in the proposer being declared non-responsive and the proposal being rejected. e.
A person is not eligible to be considered for award of this solicitation or any resulting contract or to be a subcontractor of the proposer or prime contractor if the person assisted in the development of this solicitation or any part of this solicitation or if the person participated in a project related to this solicitation when such participation would give the person special knowledge that would give that person or a prime contractor an unfair advantage over other bidders. f.
A person or proposer shall not be eligible to be considered for this solicitation if the person or proposer engaged in or attempted to engage in prohibited communications as described in
Section 13 of this solicitation. g.
The proposing institution is to use this Depository Application as the Official Proposal Form to submit prices, rates, and to answer questions. h.
Proposer must be an institution qualified under current state law to serve as the College's
Depository Bank. i.
Transfer of funds will commence at such time the successful Proposer has provided the College with all required forms and supplies necessary to insure uninterrupted day-to-day operations.
Proposer will, upon termination of contract, cooperate with the new Depository Bank for transfer of funds. j.
If unit prices and their extensions do not coincide, the College will accept the price(s) resulting in the lesser amount(s). The College requires that bank fees are fixed for the entire contract period. k.
Estimated quantities have been listed within the Proposal. The College reserves the right to increase or decrease quantities during the contract period, depending upon the College's needs. l.
There is no express or implied obligation for the College to reimburse responding firms for any expenses incurred in preparing applications in response to this Proposal, and the College will not reimburse responding firms for these expenses, nor will the College pay any subsequent costs associated with the provision of any additional information or presentation, or to procure a contract for these services.
4.
Preparation of Proposal
The Request for Proposals requests certain information to be completed and/or attached and specifically labeled. RFPs must be complete, address all aspects of the RFP, and include all
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requested information in the Attachments as listed in the Table of Contents to receive full consideration by the College in the selection process.
Proposal:
The technical proposal shall include, as a minimum, the following information:
• Cover letter: The cover letter shall not to exceed 2 pages in length, summarizing key points in the proposal.
• Project Management and Services: This section shall include the management and technical approach as well as a description of all services offered by the proposer. Include an organizational chart, which includes “key” staff members and their respective responsibilities for this project. Provide a detailed management plan with defined lines of authority and proposer’s commitment to utilize HCC students in an internship capacity with the firm.
• Qualifications and Experience of Firm: This section shall include a description of the firm, including firm’s history, size and professional staff composition. Include a description of the firm’s past and current contracts/assignments, which are related to the type of services, required by this solicitation.
• Qualifications and Experience of Personnel: This section shall include a project-staffing plan including resumes for all proposed “key” staff members who will be assigned to this project. If personnel substitutions are contemplated on a contingency basis, they should also be identified.
• Small Business Participation: This section shall include a clear statement of the firm’s commitment and plan to meet the small business goal specified in this solicitation, if any. b. Price
The price proposal shall be clearly identified as such in the technical proposal documents. (Refer to Attachments No. 2 through 2.3).
5. Evaluation Criteria
HCC staff will carefully review the submitted applications. The staff recommendation will be based on the application determined to be in the best interest of the College. The evaluation of the applications will be made based on the following criteria:
¾
¾
Factor
Ability to perform and provide the required and requested services;
Cost
Percentage Weight banking
15% services; 15%
¾ Completeness and agreement to points outlined in the
Depository 15%
¾ Interest rates paid on interest bearing accounts, time deposits,
¾
and investments;
Financial strength
¾
¾ Funds and stability;
15%
15%
Earnings credit on average available account balances;
¾ Convenience of locations; and,
¾ Previous service relationship with the College and its related entities
10%
5%
5%
5%
Total 100%
6. Contract Award
Award of a contract, if awarded, will be made to the proposer who (a) submits a responsive proposal;
(b) is a responsible proposer; and (c) offers the best value to HCC, price and other factors
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considered. A responsive proposal and a responsible proposer are those that meet the requirements of and are as described in Section 3 or this solicitation. HCC may award a contract, based on initial proposals received, without discussion of such proposals. Accordingly, each initial proposal should be submitted on the most favorable terms from a price and technical standpoint, which the proposer can submit to HCC.
Except as otherwise may be set forth in this solicitation, HCC reserves the right to waive any informalities, non-material errors, technicalities, or irregularities in the proposals submitted and documents and consider the proposal for award.
HCC also retains the right to select one or more depositories as places of deposit for funds as provided in Subchapter A of Chapter 51, Section 51.003, of the Texas Education Code.
7. Bid Security Bond a.
All bids shall be accompanied by a cashier’s check, payable to Houston Community College, in the sum of Fifty Thousand Dollars ($50,000.00). This check shall be to secure compliance with the bid and if the bid is accepted by HCC and the bidder fails to enter into a contract with Houston
Community College as bid, or after being selected as the bidder offering the best value, fail to qualify as the College Depository Bank, then the certified check shall be retained by the College for liquidated damages. b.
Securities Pledged. As security for the deposits of HCC, the institution will pledge to HCC securities equal to 110% of their market or par value, whichever is lower, of the largest total balances HCC maintains in the institution, less the amount provided by the Federal Deposit
Insurance Corporation (FDIC). These aggregate balances are estimated not to exceed
$60,000,000.
Approved securities are restricted to those defined in HCC Investment Policy (Attachment
3.4) and as provided for in the Government Code, Chapter 2257, Collateral for Public
Funds.
The Pledge will be evidenced by a separate Depository Pledge Agreement in accordance with the requirements of State and Federal law. Please submit a copy of the Depository
Pledge Agreement as Attachment 22.
The securities comprising the pledge are to be calculated using market value. The securities so pledged, the amounts thereon, and the time for pledging it should satisfy statutory requirements and the HCC Investment Policy as included in Attachment 3.4.
HCC will also accept a Surety Bond as collateral for the deposits of HCC. The Surety
Bond must meet the requirements of the Texas Education Board and HCC Investment
Policy as included in Attachment 3.4. c.
Safekeeping. The securities pledged are to be held in safekeeping at a financial institution acceptable to HCC. The original copies of all security receipts are to be filed with the Executive
Director, Business Affairs. HCC will reimburse the Depository Bank for safekeeping charges, if any. Please specify the safekeeping charges that will apply, if any, in your bid response.
Please submit a copy of the Safekeeping Agreement as Attachment 23. The safekeeping agreement should clearly state that the Trustee is instructed to release the collateralized securities to HCC if HCC has determined that the Depository Bank has failed to pay on any accounts including, but not limited to, matured investments in Certificates of Deposit,
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or HCC has determined that HCC funds are in jeopardy for any reason including, but not limited to, involuntary closure or change in ownership.
The Safekeeping Agreement should have signatories and be executed by the Trustee institution, the Depository Bank, and HCC. d.
Substitutions. Any substitutions of the securities or reductions in the total amount pledged are to be made only by and with the proper written authorization approved by an authorized signatory.
HCC will approve all securities pledged. In the case of reductions, the Depository Bank is to provide in writing that collateral will be available when needed to meet normal HCC balance increases throughout the year. Any securities pledged are to satisfy statutory requirements and
HCC Investment Policy. e.
Certification and Delivery of Collateral. In accordance with state law, the Board of Directors of the selected Depository Bank will be required to provide a resolution of certification approving the commitment and delivery of the collateral to the safekeeping institution not later than five days before the commencement of the contract period.
8.
Investments a.
Direct Investment Alternative. HCC desires a Bank Depository relationship which provides full legal flexibility in investment activities. Since state law permits HCC to invest in direct debt securities of the United States Government or its agencies or instrumentalities guaranteed by the full faith and credit of the United States Government, HCC will have the right, at its sole discretion, and based on maturities and liquidity needs of HCC, to select direct investment in government obligations. b.
Certificates of Deposit. Certificates of Deposit (CD’s) purchased for HCC will be non-negotiable and will be registered in the name of HCC. CD’s must be fully insured by the FDIC or collateralized by fully guaranteed Federal obligations that are pledged to HCC and that have a market value equal to or greater than the CD for the life of the CD. Proof of collateral must be supplied to HCC before the CD’s are paid. c.
Interest Calculations. Interest on all CD’s will be computed on an actual day basis, and the interest paid to HCC on the maturity date. Payments will be made by crediting the accounts from which investments were made. Interest calculations should include the first day in the investment period but should not include the day of maturity. d.
Extension of Investments. The Depository Bank agrees to honor and continue any investments made during the term of the Depository Services Contract that will mature after the expiration date of the contract at the same rate established before the expiration of the contract. e.
HCC may lawfully invest all or any portion of its funds. The bidder will and shall aid and assist
HCC in any permitted investment without charge, including repurchase agreements. If HCC sells bonds, it reserves the right to invest these monies as allowed by law.
9. Postponement of Proposals Due Date/Time
Notwithstanding the date/time for receipt of proposals established in this solicitation, the date and time established herein for receiving proposals may be postponed solely at HCC’s discretion.
10. Oral Presentations
During the process of selecting a company to provide the required services, oral presentations may or may not be held. Each proposer should be prepared to make a presentation to HCC. The
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presentations must show that the proposer clearly understands the requirements of the solicitation, and has a strategic plan and approach to complete the work.
11. Small Business Development Program (SBDP) a.
HCC has adopted a Small Business Development Program for small businesses attempting to provide goods and/or services as prime contractors or as subcontractors to other prime contractors to HCC. The program is designed to prevent discrimination by ensuring that small, underutilized and disadvantaged businesses are informed and prepared to compete for HCC procurements. HCC will neither discriminate nor select vendors on the basis of race, color, national origin, religion, gender, age or disability in its procurement selection process. b.
Small businesses whose gross annual income averaged over the past three (3) years does not exceed the Small Business Administration’s size standard as specified in 13 CFR Part 121 are eligible to apply for participation in the program. c.
For this solicitation, HCC has established Best Effort as its goal for Small Business participation. d.
Good Faith Efforts: HCC will make a good faith effort to utilize small businesses in all contracts.
The annual program goals may be met by contracting directly with small businesses or indirectly through subcontracting opportunities. Therefore, any business that contracts with HCC will be required to make a good faith effort to award subcontracts to small businesses. The subcontracting goal applies to all vendors regardless of their status By implementing the following procedures, a contractor shall be presumed to have made a good faith effort: e.
To the extent consistent with industry practices, divide the contract work into reasonable lots. f.
Give notice to SBDP eligible firms of subcontract opportunities or post notices of such opportunities in newspapers and other circulars. g.
Document reasons for rejecting a firm that bids on subcontracting opportunities.
12. Small Business Compliance
To ensure compliance with any stated small business participation goal, the selected contractor will be required to meet with the HCC Buyer and the HCC Small Business Representative at the 50% and
75% completion phases/dates of the project, to verify small business participation activity and to ensure compliance with the stated small business goal, if any.
13. Prime Contractor/Contracts for Services
The prime contractor must perform a minimum of 30% of any contract for services with its labor force and or demonstrate management of the contract for services to the satisfaction of HCC.
14. Internship Program a.
HCC is expanding its student internship program. All vendors are encouraged to make a commitment to utilize certain HCC student(s) in an internship capacity with the company under any resulting contract for services required under this solicitation. The selected contractor will be expected to pay the student(s) at least the minimum wage required by law. HCC will provide the selected contractor with the name of student(s) eligible to participate in the internship program. b.
For additional information regarding the internship program, please contact Dr. Freddie Wade,
Director of Workforce Program Initiatives at (713) 718-7596.
15. Prohibited Communications
Except as provided in exceptions below, the following communications regarding this solicitation or any other invitation for bids, requests for proposal, requests for qualifications, or other solicitation are
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prohibited:
• Between a potential vendor, subcontractor to vendor, service provider, proposer, offeror, lobbyist or consultant and any Trustee;
• Between any Trustee and any member of a selection or evaluation committee; and
• Between any Trustee and administrator or employee.
The communications prohibition shall be imposed from the day the solicitation is first advertised through the day the contract documents are signed by all parties. During this period, no HCC
Trustee and no Vendor shall communicate in any way concerning any pending Solicitation involving that Vendor, subject to the penalties stated herein.
The communications prohibition shall terminate when:
• The contract is awarded by the Chancellor or designee; or
• The award recommendations are considered by the Board at a duly-noticed public meeting.
In the event the Board refers the recommendation back to staff for reconsideration, the communication prohibition shall be re-imposed.
The communications prohibition shall not apply to the following:
• Duly noted pre-bid or pre-proposal conferences.
• Communications with the HCC General Counsel.
• Emergency contracts.
• Presentations made to the Board during any duly-noticed public meeting.
• Unless otherwise prohibited in the solicitation documents, any written communications between any parties, provided that the originator shall immediately file a copy of any written communication with the Board Services Office. The Board Services Office shall make copies available to any person upon request.
• Nothing contained herein shall prohibit any person or entity from publicly addressing the
Board during any duly-noticed public meeting, in accordance with applicable Board policies, regarding action on the contract.
Any potential vendor, subcontractor vendor, service provider, bidder, offeror, lobbyist or consultant who engages or attempts to engage in prohibited communications shall not be eligible for the award of any resulting contract under this solicitation. Any other direct or indirect actions taken to unduly influence competitive purposes, to circumvent equal consideration for competitive bidders, or to disregard ethical and legal trade practices will disqualify bidders, vendors, service providers, lobbyist, consultants, and contractors from both this current and any future consideration for participation in HCC orders and contracts.
16. Drug Policy
HCC is a drug-free workforce and workplace. The manufacture, sale, distribution, dispensation, possession or use of illegal drugs (except legally prescribed medications under physician’s prescription and in the original container) or alcohol by vendors or contractors while on HCC’s premises is strictly prohibited.
17. Taxes
HCC is tax exempt as a governmental subdivision of the State of Texas under Section 501C (3) of the
Internal Revenue Code. Limited Sales Tax Number: 1-74-1709152-1. No proposal shall include any costs for taxes to be assessed against HCC.
18. Explanation to Proposers
Any explanation desired by a prospective proposer regarding the meaning or interpretation of the solicitation documents must be requested in writing and with sufficient time allowed (a minimum of
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seven (7) calendar days before the date set to receive proposals) for a response to reach prospective proposers before the submission of their proposals. Any HCC response will be in the form of an amendment of the solicitation or an informational letter. The response will be made available to all prospective proposers via HCC website at www.hccs.edu. Receipt of any amendment(s) issued by HCC shall be acknowledged with the proposal submission.
19. Texas Public Information Act
HCC considers all information, documentation and other materials requested to be submitted in response to this solicitation to be of a non-confidential and/or non-proprietary nature, and therefore, shall be subject to public disclosure under the Texas Public Information Act (Texas Government
Code, Chapter 552.001, et seq.) (“the Act”) after a contract if any, is awarded. If the proposer considers any information submitted in response to this request for proposal to be confidential under law or constitute trade secrets or other protected information, the proposer must identify such materials in the proposal response. Notwithstanding the foregoing, the identification of such materials would not be construed or require HCC to act in contravention of its obligation to comply with the Act and the proposer releases HCC from any liability or responsibility for maintaining the confidentiality of such documents.
20. Appropriated Funds
The purchase of service or product, which arises from this solicitation, is contingent upon the availability of appropriated funds. HCC shall have the right to terminate the resulting contract at the end of the current or each succeeding fiscal year if funds are not appropriated by the HCC Board of
Trustees for the next fiscal year that would permit continuation of the resulting contract. If funds are withdrawn or do not become available, HCC reserves the right to terminate the resulting contract by giving the selected contractor a thirty (30) day written notice of its intention terminate without penalty or any further obligations on the part of HCC or the contractor. Upon termination of the contract HCC shall not be responsible for any payment of any service or product received that occurs after the end of the current contract period or the effective date of termination, whichever is the earlier to occur. HCC’s fiscal year begins on September 1 and ends on August 31
21. Conflict of Interest st .
If a firm, proposer, contractor or other person responding to this solicitation knows of any material personal interest, direct or indirect, that any member, official or employee of HCC would have in any contract resulting from this solicitation, the firm must disclose this information to HCC. Persons submitting a proposal or response to this solicitation must comply with all applicable laws, ordinances, and regulations of the State of Texas Government Code, including, without limitation,
Chapter 171 and 176 of the Local Government Code. The person /proposer submitting a response to this solicitation must complete (as applicable), sign and submit Attachment No. 17, Conflict of
Interest Questionnaire Form, and Attachment No. 18, Disclosures – Financial Interest
and Potential Conflict of interests with the proposal package. HCC expects the selected contractor to comply with Chapter 176 of the Local Government Code and that failure to comply will be grounds for termination of the contract.
22. Ethics Conduct
Any direct or indirect actions taken to unduly influence competitive purposes, to circumvent equal consideration for competitive bidders, or to disregard ethical and legal trade practices will disqualify vendors and contractors from current and future consideration for participation in HCC orders and contracts.
22. No Third Party Rights
This Contract is made for the sole benefit of the HCC and the Contractor and their respective successors and permitted assigns. Nothing in this Contract shall create or be deemed to create a relationship between the Parties to this Contract and any third person, including a relationship in the
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nature of a third-party beneficiary or fiduciary.
24. Submission Waiver
By submitting a response to this RFP, the Offerer or respondent agrees to waive any claim it has or may have against Houston Community College and its trustees, employees or agents arising out of or in connection with (1) the Administration, evaluation or recommendation of any offer or response;
(2) any requirements under the solicitation, the solicitation or response package or related documents; (3) the rejection of any offer or any response or any part of any offer or response; and/or (4) the award of a contract, if any.
25. Other Miscellaneous a.
Periodic Review. The College requires a review meeting at least once every six months to evaluate the working relationship between the College and the Depository Bank. The objectives include addressing any problems and to seek solutions, as well as keeping abreast of changes, new services, or new requirements. b.
Depository Application and Resulting Contract. The final appointment of the Depository Bank will be made by the College by a contract award of the College Board of Trustees. The successful
Proposer may be required to execute a new Depository Application/Depository Services Contract which incorporates all of the requirements of this Depository Application, accompanying related schedules, and materials as called for in this Depository Application, and any exceptions, conditions, or qualifications to the specifications included herein as deemed appropriate by the
College. In the alternative, this fully executed Depository Application and accompanying related schedules, attachments, and materials constitute the Depository Services Contract upon acceptance and execution by the College. c.
Designating Officials. The Proposer is to provide a list of contact personnel, Attachment No. 17 within the financial institution for communication and assistance with the College.
15

PROJECT TITLE: Bank Depository Services
PROJECT NO.: 10-36
Name of Proposer/Contractor: ____________________________
Address: ______________________________________________
Telephone: ____________________________________________
Fax: __________________________________________________
E-mail: ________________________________________________
Receipt of Proposal Amendment Number(s): __________ __________ ___________
In compliance with the requirements of this Request for Proposals for Bank Depository Services, the undersigned hereby proposes to furnish all necessary resources required to perform the services in accordance with the Technical and Price Proposal dated ______________________ and as mutually agreed upon by subsequent negotiations, if any.
Signed By: ______________________________
Name: __________________________________
(Type or Print)
Title: ___________________________________
(Type or Print)
16

Page 2 of 2
Attachment No. 1 Cont’d
ACCEPTANCE AND CONTRACT AWARD FORM
(Note: This page will be completed by HCC.)
Purchase Order No.___________ (for payment purposes only)
Project No. 10-36
Contractor to perform the work required herein in accordance with Purchase Order(s) issued by HCC and the Terms and Conditions of Purchase posted on the HCC website at www.HCC.edu
, incorporated herein by reference, and the prices, scope of services and general terms and conditions attached hereto and made a part hereof.
HOUSTON COMMUNITY COLLEGE
Executed for and on behalf of the Houston Community
College pursuant to approval by the Board of Trustees on ____________________, 2010
Signed By: _______________________________
Title: Executive Director, Procurement Operations
17

The Bidder/Contractor shall furnish all resources and services necessary in accordance with the scope of services and the general terms and conditions of the sample contract for the price(s) listed below.
(TO BE COMPLETED BY THE FINANCIAL INSTITUTION):
SERVICE DESCRIPTION
Balance Related Services
FDIC Assessment
Depository Services
Account Maintenance
Banking Center Deposit
Vault Deposit
Item Processing Deposit
Debits Posted – Other
General Cks Paid – Not Truncated
Direct DDA Stmt Per Acct
Direct Stop Pay Inquiry
Direct Paid Item Inquiry
TFR Master Acct Maint
TRF Subsidiary Acct Maint
Depository+ Sub Acct Maint
Returns – Chargeback
Cks Deposited
Stop Pay Automated<=12 Months
Debits Posted – Electronic
Credits Posted – Electronic
Gen Disb Cks PD – IS Front IMG
Direct Account Transfer
Commercial Deps – Cash Vault
Curr/Coin Dep/$100 – VLT
MONTHLY
ACTIVITY
$37,426,506
6,025
3
2
1,019
12
128
625
1
5
11
2
858
3
6
97
18
1
23
1
3
UNIT
PRICE
TOTAL
CHARGE
Curr Supp/$100-Nonstd-VLT 18
Coin Supply/Roll – Bkg Ctr
Coin Supplied/Roll – VLT
Change Order Vault
Change Order Bkg Ctr
Curr Supp/$100 – Bkg Ctr
General ACH Services
ACH Optional Rpts – Electronic
ACH Delete/Reversal (E)
ACH Return Item – NOC
20
141
6
3
6
35
2
97
18

MONTHLY
ACTIVITY SERVICE DESCRIPTION
General ACH Services (continued)
ACH Monthly Maintenance (E)
ACH Input – Transmission (E)
ACH Blocks Auth Instructions
ACH Blocks Auth Maintenance
ACH Originated Addenda (E)
ACH Monthly Maintenance (W)
Corporate Off US Credits (W)
ACH Originated Addenda (W)
ACH Standard Reports – Fax
ACH Standard Reports – Electronic
Consumer On Us Credits (E)
Consumer Off US Credits (E)
Consumer On US Debits (E)
Consumer Off US Debits (E)
Corporate On US Credits (E)
Corporate Off US Credits (E)
ACH Credit Received Item (E)
ACH Debit Received Item (E)
Controlled Disbursements
Controlled Disb Maintenance
Cont Disb Cks Paid – Truncated
Cont Disb – Funding Credits
Wire Transfer
Direct Wire Maintenance Fee
Elec Wire Out – Domestic
Elec Wire Out – Book DB
Incoming Domestic Wire
Cust Maint Template Storage
Account Reconciliation
ARP Full PPay Maint Paper Rpt
ARP Full PPay Input Per Item
ARP Recon Trans End of Cycle
Positive Pay Exceptions
ARP PPay Maint – No Recon
ARP PPay No Recon Input Item
Information Services
Direct Previous Day Maint
Direct Current Day Maint
Direct Per Account
Direct Current Day Std Item
Direct Previous Day Ext Item
596
2
53
50
7
62
16
10
5
30
2,857
8,711
286
1,434
367
229
617
141
2
1,524
24
5
1,669
3
1
6
1
1
1
18
1,655
3,924
1
30
2
3
23
UNIT
PRICE
TOTAL
CHARGE
19

SERVICE DESCRIPTION
EDI Services
MONTHLY
ACTIVITY
UNIT
PRICE
TOTAL
CHARGE
Direct EDI Report Per Acct
Rcvg Remit Adv – Online Trans
Receiving – Advising - Online
1
233
1
Cashpay Services
Cashpay Monthly Maint – ATM
Cashpay ATM WD Domestic
Cashpay Web User Services
Cashpay Elec – Enrollment
Image
CD ROM Maintenance
725
595
2
18
CD ROM Per Image
CD ROM Disk
Miscellaneous
Check Copy
3
1,621
3
Nonrelationship Cust Ck Cashed
Total Service Charges
7
38
Earnings Credit Rate on Available Account Balances for the most recent three months:
__________%. June, 2010
July, 2010 __________%.
August, 2010 __________%
Rate Basis ___________________________________________________
20

Safe Deposit Box (1 large)
Tamper-proof Disposable Deposit Bags (Large & Small)
Endorsement Stamps (self-inking)
Printed Deposit Tickets (4-part carbonless)
As Attachment No. 25 please describe in detail the disaster and control procedures in place as described in Section VIII Other Stipulations, Paragraph G.
As Attachment No. 26, please provide the pricing for any one-time setup fee and software fee for bank services the College is currently using as included in Attachment No. 2, and considering using in
Attachment No. 2.1.
To maximize control and investment opportunities, the College requires Balance Reporting for daily access of its bank accounts to obtain balance information. The most desirable access would be accomplished via Internet. The information to be contained in the report would be for the previous business day and include: ledger balance, collected balance, one-day float amount, two-day float amount, total credits, total debits, and detail debits and credits. As Attachment No. 27 please confirm the capability of your bank to provide this service, the options available, and the pricing.
As Attachment No. 28 please provide bank benefits that would be available to HCC employees and students, i.e., free checking, discounted loans, traveler’s checks, etc.
The College will consider Other Bank Services Proposed which may benefit HCC, including Remote
Capture for Electronic Check Deposits. As Attachment No. 29, please list and discuss additional services available and the pricing of each.
21

The depository institution represents a potential source for investment transactions, and is a basis for
Proposal comparison. In this section, there are three sample investment opportunities based on a specific date. Please complete the sample transaction section below with the investments you would recommend for the amount and time the funds are available for investment.
A transaction will be an order placed with the Agent on a particular day to purchase investment securities. Each transaction may include the purchase of more than one security with more than one maturity date.
Investment securities will include all securities allowed by the Texas Public Funds Investment Act, or as amended and permitted by the College Investment Policy which may be more restrictive than state law.
For the following three-sample investment transactions, use Tuesday, September 14, 2010, as the acquisition date for the purchase of the securities.
1) Amount available to invest
Investment
Security date value
$1,000,000
30
____________________
____________________
____________________
Cost
Equivalent
Cost
2) Amount available to invest period
Security value
Cost
3) bond
Cost
Amount available to invest period
Security
____________________
____________________
____________________
$2,000,000
60
____________________
____________________
____________________
____________________
____________________
____________________
$1,000,000
Cost
Equivalent
____________________
____________________
____________________
____________________
____________________
____________________
22

0 - 6
DAYS
7 - 30
31 - 60
61 - 90
91 - 120
121 - 150
151 - 180
181 - 365
OR
BASIS POINTS
MARKET
RATE
Minimum and Maximum Maturity Lengths and Dollar Amounts.
I.
The minimum maturity length the Bank is willing to accept is
_________________________________.
II.
The maximum maturity length the Bank is willing to accept is
_________________________________.
III.
The minimum amount of investments the Bank is willing to accept is
_________________________________ dollars.
IV.
The maximum amount of investments the Bank is willing to accept is________________________________ dollars.
23

I. Account Activities
A. Number of Accounts for The College. The College has seventeen (17) active bank accounts, with its current depository as set forth in Attachment No. 3.1. Also see Attachment No. 3.2 and
Attachment No. 3.3 for average bank balances and transactions.
The College issues checks through the A/P Clearing Account which is utilized to issue vendor payments.
The average number of checks per month is 1,600 and the estimated dollar amount per month is
$6,000,000. The number of electronic vendor payments per month is 1,000 and the estimated dollar amount per month is $2,200,000.
The College offers its employees direct deposit of payroll and approximately 5,900 of the 6,000 employees use this service for an estimated monthly debit amount of $10,800,000. Also, 725 employees are paid with Cashpay Cards. Please specify the charges that apply for employee Cashpay Cards. The College requires check-cashing services for employees’ payroll checks at no charge to the employee.
The College reserves the right to open or close any number or type of accounts as it deems necessary through the term of the Depository Services Contract. Any services not listed, but later requested by the
College, will be charged for at a mutually agreed upon fee. Fees are to be fixed for the entire contract period. No additional setup fees or software fees will be charged if the Depository Bank mergers or is acquired by another bank.
B. Services Volumes. The services which should be made available to the College include, but are not limited to, the items that are identified in Attachment No. 2, Bank Service Requirements, and in
Attachment No. 2.1, Other Bank Services. Attachments No. 2.2 and No. 2.3 have been included to provide additional bank information regarding transaction volumes and dollar amounts that should be helpful in responding to this Depository Application. The College also requires check-cashing service for the College employees and students at no charge.
To maximize cash management control and investment opportunities, the College requires balance reporting for daily access of its bank accounts to obtain balance information. This would be accomplished by an Internet-based online reporting system which will provide the daily ending ledger and collected balances from the prior day for all accounts, a detail of the prior day's debits and credits, one day float amount, two day float amount, total credits, total debits, and detail debits and credits, current day disbursements, including deposit tickets and check numbers (if available), and current day incoming or outgoing, wires, and current day ACH. The system shall also allow online inter- and intra-bank transfers,
ACH, stop payment, and wire transfer origination instruction processes with user-defined security requirements.
Required. The balances maintained in all accounts must be collateralized in the same manner and under the same stipulations as outlined in the Pledge Requirements section. The maximum ledger and investment balances are estimated to be $200,000,000 in the aggregate. See Attachment
No. 3.2 for average balances by month.
24

close of the calendar month. The statements are to include debits and credits made on the last day of the period and the detail items. Electronic downloads, CD ROM’s, and hard copies are required by the
College.
E. Method of Payment and Reporting. The College intends to pay for all services provided by the institution as set forth in Section IV. B. and Attachments No. 2 and No. 2.1. The method to be used for the payment of these services will be the direct payment method to the extent that the cost of services exceeds the earnings credit amount generated by account balances.
The College requires account analysis statements on a monthly basis by individual account and at group level which will reflect average ledger balance, average uncollected funds, average collected balance, reserve requirement, average available balance, rate and amount of earnings credit, and detail of services provided with quantities and unit fees for each to arrive at a total service cost.
Settlement of the excess/deficient condition as reflected by the group level account analysis is to occur on an annual basis. Please submit a sample of the monthly account analysis statement that
will be provided to the College as Attachment No. 18. of showing both time and day of availability, and specify the institution location to which the availability is applicable. If more than one availability schedule is applicable, provide both. Please submit the
availability schedule(s) as Attachment No. 19.
Rates. The collected balances in each account should be accessible via the Internet and will be available for investment at the option of the College. Funds in interest bearing accounts will earn interest at the rate paid on interest bearing accounts. Please provide an explanation of the institution's policy and methodology used in setting rates paid on interest bearing accounts. Indicate if they are based on a market rate such as T-Bill discount or yield rate, or the federal funds rate, etc., and when the rates are changed. Also, please provide a historical schedule of rates paid on this type of interest bearing account. Please provide the interest rate information as Attachment No. 20.
H. Federal Income Tax Withholding. The College requires the Depository Bank to provide Federal
Income Tax withholding depository services via ACH.
I. Research business days of the request.
J. Bank method of reimbursement will be agreed upon by the Bank and the College.
II.
A.
Securities Pledged. As security for the deposits of the College, the institution will pledge to the
College securities equal to 107% of the largest total balances the College maintains in the institution, less the amount provided by the Federal Deposit Insurance Corporation (FDIC). These aggregate balances are estimated not to exceed $200,000,000.
Approved securities are restricted to those defined in the College Investment Policy and as provided for in the Government Code, Chapter 2257, Collateral for Public Funds.
This Pledge will be evidenced by a separate Depository Pledge Agreement in accordance with the requirements of State and Federal law. Please submit a copy of the Depository Pledge
25

Agreement as Attachment No. 21.
The securities comprising the pledge are to be calculated using market value. The securities so pledged, the amounts thereon, and the time for pledging it should satisfy statutory requirements and the College
Investment Policy. Please see Attachment No. 3.4.
The College will also accept a Surety Bond as collateral for the deposits of the College. The Surety Bond must meet the requirements of the Texas Education Board and the College Investment Policy as available in Attachment No. 3.4.
B. Reporting at the end of each month or at any time requested by the Controller and Chief Financial Officer or any other designated official. The report should reflect the total pledged securities itemized by:
Name
Type/Description
Par
Market
Maturity
Rating by Moody's or Standard & Poor's (both, if available)
C. Safekeeping. The securities pledged are to be held by HCC’ safekeeping agent. The collateral for bank deposits will be held in a Federal Reserve Bank account in HCC’ name or a third-party bank acceptable to HCC. The original copies of all security receipts are to be filed with the Controller and Chief
Financial Officer. The College will reimburse the Depository Bank for safekeeping charges, if any. Please specify the safekeeping charges that will apply.
Please submit a copy of the Safekeeping Agreement as Attachment No. 22. The safekeeping agreement should clearly state that the Trustee is instructed to release the collateralized securities to the
College if the College has determined that the Depository Bank has failed to pay on any accounts including, but not limited to, matured investments in Certificates of Deposit, or the College has determined that the College funds are in jeopardy for any reason including, but not limited to, involuntary closure or change in ownership.
The Safekeeping Agreement should have signatories and be executed by the Trustee institution, the
Depository Bank, and the College.
D. Substitutions. Any substitutions of the securities or reductions in the total amount pledged are to be made only by and with the proper written authorization approved by an authorized signatory. The
College will approve all securities pledged. In the case of reductions, the Depository Bank is to provide in writing that collateral will be available when needed to meet normal College balance increases throughout the year. Any securities pledged are to satisfy statutory requirements and the College Investment Policy as available in Attachment No. 3.4.
E. Certification and Delivery of Collateral. In accordance with state law, the Board of Directors of the selected Depository Bank will be required to provide a resolution of certification approving the commitment and delivery of the collateral to the safekeeping institution no later than five days before the commencement of the contract period.
26

III. Investment Activities
For illustration of the College’s investment activity, see Attachment No. 3.5.
A. Direct Investment Alternative. The College desires a Bank Depository relationship which provides full legal flexibility in investment activities. Since state law permits the College to invest in direct debt securities of the United States Government or its agencies or instrumentalities guaranteed by the full faith and credit of the United States Government, the College will have the right, at its sole discretion, and based on maturities and liquidity needs of the College, to select direct investment in government obligations. Attachment No. 2.2, Investment Transactions, provides the scenarios of three sample investment opportunities for a specific date.
For each of the three investment options, enter the information that would represent the optimum use of the funds for the time permitted, including agency type, maturity date, par value, cost, bond yield, and transaction fee, if any.
B. Certificates of Deposit. Certificates of Deposit (CD’s) purchased for the College will be nonnegotiable and will be registered in the name of the College. CD’s must be fully insured by the FDIC or collateralized by fully guaranteed Federal obligations that are pledged to the College and that have a market value equal to or greater than the CD for the life of the CD. Proof of collateral must be supplied to the College before the CD’s are paid for. (See Section V for Pledge Requirements.)
Proposers should state the rate of interest payable and the basis used to establish the rate, for each of the time periods as indicated on Attachment No. 2.3, Certificates of Deposit $100,000 or more. Also, indicate the investment minimums and maximums for maturity lengths and dollar amounts.
Calculations. Interest on all CD’s will be computed on an actual day basis, and the interest paid to the College on the maturity date. Payments will be made by crediting the accounts from which investments were made. Interest calculations should include the first day in the investment period but should not include the day of maturity.
Investments. The Depository Bank agrees to honor and continue any investments made during the term of the Depository Services Contract that will mature after the expiration date of the contract at the same rate established before the expiration of the contract.
IV. Overdraft Provisions
The College does not intend to have a net overdraft position occur during the course of the contract period. A net overdraft is to be defined as a negative balance in the College's accounts collectively, not by individual account. However, should a net overdraft condition occur, the following stipulations would apply:
(To be completed by the financial institution.)
¾ The maximum number of days the overdraft condition would be allowed is _________ banking days.
¾ The maximum amount of the overdraft to be allowed would be $ .
¾ The interest rate would be % per annum computed on an actual day basis for the days and amount of the overdraft.
In the event a check or checks are presented for payment where there are insufficient funds for the purpose of paying checks, the Depository Bank agrees to promptly notify the Controller and Chief
Financial Officer, by telephone or other means, of the overdraft condition, and to provide the Controller and Chief Financial Officer a period not exceeding one business day to respond and rectify the condition.
27

V. Other Stipulations
Notices. The successful Proposer is to notify the College in writing within ten (10) days of any changes in Federal or State regulations or laws that would affect the Depository Services
Contract.
Transfers. Notification of wire transfers will be made to the Controller and Chief Financial
Officer by written confirmation mailed to the College the same day of the transaction at no charge to the college. The College also requires same day notification be available online.
C. Right to Cancel Contract. In the event it would be ruled illegal under the provisions of any
Federal or State laws or regulations for the Depository Bank to comply with the requirements of the
Depository Services Contract, then the College expressly reserves the right and privilege to cancel the
Depository Services Contract and to re-propose.
D. Right to Audit Records. The Depository Bank's records relating to the College's accounts will be open for review during normal business hours by designated College staff members or College appointed independent auditors.
Reports. As Attachment No. 23, the proposing institution will submit a copy of the latest annual audited annual financial statements, the past two most recent quarterly
FDIC call reports, the Uniform Bank Performance Report for the latest fiscal year end, and
Depository’s rating from an independent depository-rating agency.
F. Term of the Depository Services Contract. The term of the Depository Services Contract will be for the period December 1, 2010, through November 30, 2012, with an option to renew no greater than two (2) additional two-year terms. The extensions will be under the same contract terms and conditions, with the mutual agreement of both parties. Further, the Agreement will have a ninety-day extension period for transition to the new depository bank at the end of the term.
G. Disaster Recovery and Control. As Attachment No. 24, the proposing institution should
describe disaster recovery and control including the following:
¾ Describe the Bank’s electronic data procedures and/or manual system used to provide banking services along with backup and recovery capabilities.
¾ Describe the Bank’s ability to make cash available before, during and after an emergency situation.
¾ Does the Bank have off-site facilities? If so, what are their locations?
¾ How quickly can the “hot” site be implemented in case of an emergency?
¾ Provide a detailed description of the controls in place to insure the integrity of the funds transfer system.
28

ACCOUNT NAME ACCOUNT TYPE
2003 Ltd Tax Bonds Controlled Disbursing Acct
TG Student Loan
Retirement of Indebtedness Interest Sinking Fund
General A/P Clearing
Current Operating
Non-interest bearing
Non-interest bearing
Interest bearing
Non-interest bearing
Non-interest bearing
State Local Current Restricted
Unexpended – Plant Fund
Federal Restricted Funds
Auxiliary Enterprise Fund
2003 Limited Tax Bonds
HCC Managed PFI
2001A Bond Debt Service Reserve
Non-interest bearing
Interest bearing
Non-interest bearing
Non-interest bearing
Interest bearing
Interest bearing
Interest bearing
2001A Bond Sinking & Interest Non-interest bearing
2001A Bond Proceeds Interest bearing
Note: HCC also has a high-yield savings account at J P Morgan Chase Bank.
29

MONTH, YEAR
AVERAGE COLLECTED
BALANCE
INVESTMENT
AVAILABLE BALANCE
June, 2009 $787,214 $1,318,352
July, 2009
August, 2009
September, 2009
2,957,583
6,429,081
11,958,032
1,318,677
1,319,013
2,111,323
October, 2009
November, 2009
December, 2009
January, 2010
February, 2010
March, 2010
April, 2010
May, 2010
10,679,577
7,647,741
10,030,444
10,220,360
10,612,238
10,780,028
10,607,848
6,718,542
3,474,997
3,865,791
3,866,143
5,247,614
7,720,712
7,451,467
25,136,472
30,637,152
MONTHLY
AVERAGE
$8,285,724 $7,788,976
30

HCC ACCOUNTS
NUMBER
CREDITS
NUMBER
DEBITS
A/P Clearing Controlled Disbursement 23 29
2003 Ltd Tax Bonds Controlled Disbursing Acct 4 4
16
0
0
130
TG Student Loan
Retirement of Indebtedness Interest Sinking Fund
General A/P Clearing
Current Operating
Payroll 23
Tuition Fees Other Campus Deposits 992
State Local Current Restricted 0
20
1
0
250
Unexpended – Plant Fund
Federal Restricted Funds
Auxiliary Enterprise Fund
2003 Limited Tax Bonds
HCC Managed PFI
2001A Bond Debt Service Reserve
2001A Bond Sinking & Interest
2001A Bond Proceeds
TOTAL
1
1600
2
1
0
1
208
63
11
ENDING
LEDGER
$0
0
616,838
413,380
0
6,172,518
80
0
1
1
0
0
13
26
13
0
0
1,317,936
0
0
385,129
24,666,219
4,237,354
0
0 1,560
337 $37,810,934
31

The purpose of this document is to set forth specific investment policy and strategy guidelines for the
Houston Community College (the “HCC”) in order to achieve the goals of safety, liquidity, yield, and public trust for all investment activity. The Board of Trustees of HCC shall review its investment strategies and policy not less than annually. This policy serves to satisfy the statutory requirements (specifically the
Public Funds Investment Act, Chapter 2256 of the Texas Government Code [the Act]) to define, adopt and review a formal investment strategy and policy.
It is the policy of HCC that, giving due regard to the safety and risk of investment, all available funds shall be invested in conformance with State and Federal regulations, applicable Bond Resolution requirements, adopted Investment Policy and adopted Investment Strategy.
Effective investment strategy development coordinates the primary objectives of HCC’ Investment Policy and cash management procedures with investment security risk/return analysis to enhance interest earnings and reduce investment risk and aggressive cash management to increase the available
“investment period.” Maturity selections shall be based on cash flow and market conditions to take advantage of interest earnings as viable and material revenue to all HCC funds. HCC’ portfolio shall be designed and managed in a manner responsive to the public trust and consistent with the Investment
Policy.
Each major fund type has varying cash flow requirements and liquidity needs. Therefore, specific strategies shall be implemented considering the fund’s unique requirements.
32

TITLE
Preface
Purpose
Policy
Scope
HOUSTON COMMUNITY COLLEGE
INVESTMENT POLICY
TABLE OF CONTENTS
Page #
Effect of Loss of Required Rating
Diversification
Authorized Financial Dealers and Institutions
Delivery versus Payment
Safekeeping and Collateralization
Performance
Reporting
Investment Policy Adoption and Amendment
34
34
34-37
37
37-38
38-40
40-43
43
43-44
44-45
45
44-47
47
47-48
48

INVESTMENT POLICY
1. PURPOSE. The purpose of this investment policy (the Policy) is to set forth specific investment policy and strategy guidelines for HCC in order to achieve the goals of safety, liquidity, achieving a market rate of return and maintaining public trust for all investment activities. The Board of Trustees of HCC shall review the investment strategy and policy at least annually, and the Board of Trustees shall annually approve the Investment Policy, including any revisions.
2. POLICY. It is the policy of the Houston Community College (the “HCC”) that after allowing for the anticipated cash flow requirements of HCC and giving due consideration to the safety and risks of investments, all available funds shall be invested in conformance with these legal and administrative guidelines to obtain a market rate of return.
Effective cash management is recognized as essential to good fiscal management. An active cash management and investment policy will be pursued to take advantage of investment interest as a viable and material source of revenue for HCC funds. HCC’ portfolio shall be designed and managed in a manner designed to maximize this revenue resource, to be responsive to the public trust, and be in compliance with legal requirements and limitations. HCC will invest HCC funds in a manner, which will provide the maximum security and a market rate of return while meeting the daily cash flow demands of HCC.
Investment shall be made with the primary objectives of:
™ Safety and preservation of principal
™ Maintenance of sufficient liquidity to meet operating needs
™ Maximization of yield on the portfolio
™ Public trust from prudent investment activities
3. INVESTMENT STRATEGY. HCC maintains a portfolio that utilizes specific investment strategy considerations designed to address the unique characteristics of the fund groups represented in the portfolio. HCC maintains a comprehensive and proactive cash management program, which is designed to monitor and control all HCC funds to ensure maximum utilization and yield a market rate of return. The investment strategy emphasizes low credit risk, diversification, and the management of maturities. In order to minimize risk of loss due to interest rate fluctuations, investment maturities will not exceed the anticipated cash flow requirements of the funds. The composite portfolio will have a dollar weighted average maturity of two (2) years or less. The management of maturities refers to structuring the maturity dates of the direct investments so that, while funds are initially invested for a longer period of time, some investments mature as cash needs require. The allowable investment instruments as defined in Section 7 of this Policy reflect the avoidance of credit risk. Diversification refers to dividing investments among a variety of securities offering independent returns. This strategy uses local government investment pools to achieve diversification.
3.1 in this Policy (See Section 2.) are listed below, in their order of importance:
•
•
•
•
Safety and preservation of principal;
Maintenance of sufficient liquidity to meet operating needs;
Achieve a market rate of return on the investment portfolio; and
Seek at all times to maintain public trust by adhering to the above stated objectives.
34

3.2 some investments allowed by state law. The restrictions limit possible credit risk and provide the maximum measure of safety. Within the investment objectives, the investment strategy is to utilize authorized investments for maximum advantage to HCC. To increase the interest earnings for funds identified as being available for investment over longer periods of time based upon a cash requirements projection, HCC will consider the following strategies:
Strategy No. 1. Diversifying HCC’ investment opportunities through the use of local government investment pools and money market mutual funds as authorized by the Board of Trustees. An investment pool is an entity created to invest public funds jointly on behalf of its participants and whose investment objectives in order of priority match those objectives of HCC. Funds are usually available from investment pools on a same-day basis, meaning the pools have a high degree of liquidity. Because of the size and expertise of their staff, investment pools are able to prudently invest in a variety of the investment types allowed by state law. In this manner, investment pools achieve diversification. The strategy of HCC calls for the use of investment pools as a primary source of diversification and supplemental source of liquidity. Funds that may be needed on a short-term basis but that are in excess of the amount maintained at the depository bank are available for deposit in investment pools.
Strategy No. 2. Building a laddered structure of
Investment Policy authorized securities with staggered maturities for all or part of the longer term investable funds. The benefits of this ladder approach include the following:
•
•
•
•
It is straight-forward and easily understood;
It represents a prudent diversification method;
•
All investments remain within the approved maturity horizon;
It will normally allow HCC to capture a reasonable portion of the yield curve; and,
It provides predictable cash flow with scheduled maturities and reinvestment opportunities.
Investment Act (Texas Government Code 2256.003), HCC may, at its discretion, contract with an investment management firm registered under the Investment Advisors Act of 1940 (15 U.S.C. Section 80b-1 et seq.) and with the State Securities Board to provide for investment and nondiscretionary management of its public funds or other funds under its control.
An appointed Investment Advisor shall act solely in an advisory and administrative capacity, within the guidelines of this Investment Policy. At no time shall the Advisor take possession of securities or funds or otherwise be granted authority to transact business on behalf of HCC. Any contract awarded by HCC for investment advisory services may not exceed two years, with an option to extend by mutual consent of both parties.
Duties of the Investment Advisor contracted by HCC shall abide by the
Prudent Expert Rule, whereby investment advice shall, at all times, be given with the judgment and care, under circumstances then prevailing, which persons paid for their special prudence, discretion and intelligence
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in such matters exercised in the management of their client’s affairs, not for speculation by the client or production of fee income by the advisor or broker, but for investment by the client with emphasis on the probable safety of the capital while considering the probable income to be derived.
Chapter 2263 of the Texas Government Code mandates certain actions by governing boards of state entities involved in the management and investment of state funds and adds disclosure requirements for outside financial advisors and service providers. Ethic and disclosure requirements for outside financial advisors and service providers are in Chapter 2263.01 through 2263.06 of the Texas Government Code.
3.2.4 utilize four specific investment strategy considerations designed to address the unique characteristics of the fund group(s) represented in the portfolio(s):
3.2.4.1 Investment strategies for operating funds and pooled funds containing operating funds have as their primary objective to assure that anticipated cash flows are matched with adequate investment liquidity. The secondary objective is to create a portfolio structure that will experience minimal volatility during economic cycles through diversification by security type, maturity date, and issuer. All security types, as authorized by this policy, are considered suitable investments for the operating and pooled funds.
3.2.4.2 Investment strategies for debt service funds shall have as the primary objective the assurance of investment liquidity adequate to cover the debt service obligation on the required payment date(s). These funds have predictable payment schedules.
Securities purchased shall not have a stated final maturity date which exceeds the debt service payment date, or funds shall be maintained in an investment pool or money market mutual fund to be available for debt service payments.
3.2.4.3 Investment strategies for bond funds and debt service reserve funds shall have as the primary objective the ability to generate a dependable revenue stream to the appropriate debt service fund with low degree of volatility. Managing the Debt Service
Reserve Fund’s portfolio maturities to not exceed the call provisions of the bond issue will reduce the investment’s market risk if HCC’ bonds are called and the reserve fund liquidated.
Except as may be required by the bond ordinance specific to an individual issue, securities should be of high quality, with short to medium term maturities. No investment maturity shall exceed the final maturity of the bond issue.
3.2.4.4 Debt Service Funds, including reserves and sinking funds, to the extent not required by law or existing contract to be kept segregated and managed separately.
3.2.4.5 Investment strategies for special projects or capital projects funds will have as their primary objective to assure that anticipated cash flows are matched with adequate investment liquidity. Market conditions and arbitrage regulations will influence the investment of capital project funds. When market conditions allow, achieving a positive spread to applicable arbitrage yield is the desired objective; although at no time shall the anticipated expenditure schedule be exceeded in an attempt
36

to increase yield.
Strategy No. 5 - Hold until Maturity. The strategy of
HCC is to maintain sufficient liquidity in its portfolio so that it does not need to sell a security prior to maturity. Should it become necessary to sell a security prior to maturity, where the sale proceeds are less than the current book value, the Investment Officer may authorize the sale of those securities.
4. SCOPE. The Investment Policy shall govern the investment of all financial assets considered to be part of HCC entity and includes the following funds or fund types:
Operating, Auxiliary, Unexpended, and Plant Replacement Funds, Endowment and Loan
Funds, Debt Service Funds, and any other funds which have been contractually delegated to HCC for management purposes. HCC may add or delete funds as may be required by law, or for proper accounting procedures. This policy does not include funds governed by approved trust agreements, or assets administered for the benefit of HCC by outside agencies under retirement or deferred compensation programs. Additionally, bond funds
(including debt service and reserve funds) are governed by bond ordinances and are subject to the provisions of the Internal Revenue Code and applicable federal regulations governing the investment of bond proceeds.
5.
INVESTMENT OBJECTIVES. HCC shall manage and invest its cash with four primary objectives, listed in order of priority: safety, liquidity, yield, and public trust. The safety of the principal invested always remains the primary objective. All investments shall be designed and managed in a manner responsive to public trust and consistent with all applicable Texas statutes, this Policy and any other approved, written administrative procedures.
HCC shall maintain a comprehensive cash management program with includes collection of accounts receivable, vendor payments in accordance with invoice terms, and prudent investment of available cash. Cash management is defined as the process of managing monies in order to insure maximum cash availability and maximum yield on short-term investment of pooled idle cash.
The four objectives of HCC’ investment activities shall be as follows (in the order of priority):
5.1 objective in the investment decisions of HCC. Each investment transaction shall seek to ensure the preservation of capital in the overall portfolio. The risk of loss shall be controlled by investing only in authorized securities as defined in this
Policy, by qualifying the financial institutions with whom HCC will transact, and by portfolio diversification. Safety is defined as the undiminished return of the principal on HCC’ investments.
5.2 Liquidity. HCC’ investment portfolio shall remain sufficiently liquid to meet all operating requirements that may be reasonably anticipated. This is accomplished by structuring the portfolio so that securities mature concurrent with cash needs to meet anticipated demands. Because all possible cash demands cannot be anticipated, the portfolio will also be placed in money market mutual funds or local government investment pools which offer same day liquidity for short-term funds.
Market Rate-of-Return (Yield). HCC’ investment portfolio shall be designed with the objective of attaining a market rate of return throughout budgetary and economic cycles, taking into account the investment risk constraints and liquidity
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needs. Return on investment is of secondary importance compared to the safety and liquidity objective described above. The core of investments is limited to relatively low risk securities in anticipation of earning a fair return relative to the risk being assumed.
Public Trust. All participants in HCC’ investment program shall seek to act responsibly as custodians of the public trust. Investment officials shall avoid any transaction which might involve a conflict of interest or otherwise impair public confidence in HCC’ ability to govern effectively. All officials of HCC having either a direct or indirect role in the process of investing idle funds shall act responsibly as custodians of the public trust.
6. INVESTMENT RESPONSIBILITY AND CONTROL. The authority for investing funds rests with the Board of Trustees. As provided in this policy, the daily operation and management of HCC’ investments are the responsibility of the following persons. These individuals must be qualified and capable in making investment decisions.
6.1 Delegation of HCC. The Board of Trustees delegates the authority to invest HCC funds to the Chancellor or designee. Therefore, the Chancellor or designee is the Investment Officer for Houston Community College and is authorized to deposit, withdraw, invest, transfer or manage in any other manner the funds of HCC. In the management of the investment program, the Chancellor or designee shall establish written procedures for the operation of the investment program consistent with this Policy. Such procedures shall include explicit delegation of HCC to persons responsible for investment transactions. All persons involved in investment activities will be referred to in this Policy as “Investment
Officials.” No persons may engage in an investment transaction except as provided under the terms of this Policy and the procedures established by the
Chancellor or designee. The Chancellor or designee shall be responsible for all transactions undertaken, and shall establish a system of controls to regulate the activities of subordinate Investment Officials. The system of controls shall be designed to provide reasonable assurance that ensures the assets of HCC are protected from loss, theft or misuse. The concept of reasonable assurance recognizes that:
(1) the cost of a control should not exceed the benefits likely to be derived; and,
(2) the valuation of costs and benefits requires estimates and judgments by management.
The Chancellor or designee shall be designated as the primary investment officer for HCC and shall be responsible for investment decisions and activities under the direction of the Board of
Trustees. The Chancellor or designee may delegate any phase of the investment program to the Executive Director, Business Affairs. Both the Chancellor or designee and the Executive
Director, Business Affairs are responsible for daily investment decisions and activities, however, ultimate responsibility for investment decisions will rest with the Chancellor or designee.
Commitment of financial and staffing resources in order to maximize total return through active portfolio management shall be the responsibility of the Board of Trustees.
Prudence. The standard of prudence to be applied by the Investment
Officer shall be the "prudent investor" rule, which states, "investments shall be made with judgment and care, under circumstances then prevailing, which persons of prudence, discretion and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived." In determining whether the Investment Officer has exercised prudence with respect to an investment decision, the determination shall be made taking into consideration the
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following:
6.2.1 The investment of all funds over which the Investment Officer had responsibility rather than a consideration as to the prudence of a single investment; and,
6.2.2 whether the investment decision was consistent with the written investment Policy and procedures of HCC.
6.3 Due Diligence. The Investment Officer acting in accordance with written policies and procedures and exercising due diligence, shall not be held personally responsible for a specific security’s credit risk or market price changes. All
Investment Officials involved in investment transactions will be bonded.
Ethical Standards and Conflicts of Interest. All HCC Investment
Officials having a direct or indirect role in the investment of HCC funds shall act as custodians of the public trust avoiding any transaction which might involve a conflict of interest, the appearance of a conflict of interest, or any activity which might otherwise discourage public confidence. Officers and employees involved in the investment process shall refrain from personal business activity that could conflict with proper execution of the investment program, or which could impair the ability to make impartial investment decisions.
An Investment Officer who has a personal business relationship with the depository bank or with any entity seeking to sell an investment to HCC shall file a statement disclosing that personal business interest. Investment officials shall disclose any material interests in financial institutions with which they conduct business. They shall further disclose any personal financial/investment positions that could be related to the performance of the investment portfolio. Investment
Officials shall refrain from undertaking personal investment transactions with the same individual with whom business is conducted on behalf of HCC.
An Investment Officer who is related within the second degree of affinity or consanguinity to an individual seeking to sell an investment to HCC shall file a statement disclosing that relationship. A statement required under this subsection must be filed with the Texas Ethics Commission and the HCC Board of Trustees.
6.5
Training. Each member of the Board of Trustees shall attend at least one training session related to the person’s responsibilities within six months after taking office or assuming duties. The training will include education in investment controls, security risks, strategy risks, market risk, diversification of investment portfolio, and compliance with the Public Funds Investment Act.
The investment officers shall attend at least one training session containing at least 10 hours of instruction relating to the officer's responsibility under the Public
Funds Investment Act within twelve (12) months after assuming duties, and attend an investment training session not less than once every two years, receiving an additional ten (10) hours of training. The investment training session shall be provided by an independent source approved by the Board of Trustees or a designated investment committee advising the investment officer. Such training from an independent source shall include the Texas Higher Education Coordinating
Board, the Government Finance Officers Association of Texas, the Government
Treasurers Organization of Texas, the Texas Municipal League, the University of
North Texas Center Public Management, or any other professional organization, institute of higher learning, or any other sponsor other than a business organization with whom the Board of Trustees may engage in an investment transaction.
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6.6 written internal controls, which shall be reviewed annually by independent auditors. The controls shall be designed to prevent loss of public funds due to fraud, error, misrepresentation, unanticipated market changes, or imprudent actions. The internal controls are to be reviewed annually in conjunction with an external independent audit. This review will provide assurance of compliance with policies and procedures as specified by this Policy. HCC, in conjunction with its annual financial audit, shall perform a compliance audit of management controls and adherence to HCC’ established investment policy. The internal controls shall address the following points.
™ Control of collusion.
™ Separation of transactions authority from accounting and record keeping.
™ Custodial safekeeping.
™ Avoidance of physical delivery securities.
™ Clear delegation of authority to subordinate staff members.
™ Written confirmation for telephone (voice) transactions for investment and wire transfers.
™ Development of wire transfer agreement with the depository bank or third party custodian.
7. AUTHORIZED INVESTMENTS. As stated previously, safety of principal is the primary objective in investing HCC funds and can be accomplished by limiting two types of risk-credit risk and interest rate risk. Credit risk is the risk associated with the failure of a security issuer or backer. Interest rate risk is the risk that the value of a portfolio will decline due to an increase in the general level of interest rates.
In order to provide for safety of principal as HCC’ primary objective, only certain investments are authorized as acceptable investments for HCC. HCC is not required to liquidate investments that were authorized investments at the time of purchase. The following list of authorized investments for HCC intentionally excludes some investments authorized by law. These restrictions are placed in order to limit possible risk and provide the maximum measure of safety to HCC funds.
7.1 Authorized and Acceptable Investments. The authorized list of investment instruments are as follows:
7.1.1 Obligations of the United States or its agencies and instrumentalities.
7.1.2 Direct obligations of the State of Texas, or its agencies and instrumentalities.
7.1.3 Other obligations, the principal of and interest on which are unconditionally guaranteed or insured by, or backed by the full faith and credit of, the State of Texas or the United States or their respective agencies and instrumentalities.
7.1.4 Collateralized Certificates of Deposit. A certificate of deposit issued by a depository institution that has its main office or a branch office in this state, and is:
•
• guaranteed or insured by the Federal Deposit Insurance
Corporation or its successor or the National Credit Union Share
Insurance Fund or its successor; secured by obligations that are described by Section 2256.009(a) of the Public Funds Investment Act, including mortgage backed
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• securities directly issued by a federal agency or instrumentality, but excluding those mortgage backed securities of the nature described in Section 2256.009(b) of the Act; or secured in any other manner and amount provided by law for deposits of HCC.
7.1.5 Eligible Local Government Investment Pools. Public funds investment pools which invest in instruments and follow practices allowed by the current law as defined in Section 2256.016 of the Texas
Government Code, provided that:
•
•
•
•
•
•
•
•
• the investment pool has been authorized by the Board of Trustees; the investment pool has an advisory board as specified in the
Public Funds Investment Act. the pool shall have furnished the Investment Officer an offering circular containing the information required by Section
2256.016(b) of the Texas Government Code; the pool shall furnish the Investment Officer investment transaction confirmations with respect to all investments made with it; the pool shall furnish to the Investment Officer monthly reports containing the information required under Section 2256.016(c) of the Texas Government Code; the pool is continuously rated no lower than “AAA” or “AAA-m” or an equivalent rating by at least one nationally recognized rating service; the pool marks its portfolio to market daily; the pool’s investment objectives shall be to maintain a stable net asset value of one dollar ($1.00); and the pool’s investment philosophy and strategy are consistent with this Policy.
7.1.6
Repurchase Agreements, Reverse Repurchase Agreements,
Bankers’ Acceptances. Fully collateralized Repurchase Agreements.
The agreement must have a defined termination date and must be secured by obligations of the United States or its agencies and instrumentalities.
7.1.6.1
The agreement must be pledged to HCC, held in the name of
HCC, and deposited at the time the investment is made with HCC’ custodial (safekeeping) agent, and is placed through a primary government securities dealer, as defined by the Federal Reserve, or a financial institution doing business in the state of Texas.
7.1.6.2
No repurchase agreement shall be entered into unless a Master
Repurchase Agreement has been executed between HCC and its trading partner.
7.1.6.3
All repurchase agreement transactions will be on a deliver vs. payment basis.
7.1.6.4
Securities received for repurchase agreements must have a market value greater than or equal to 102 percent at time funds are disbursed.
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7.1.7
Bankers’ Acceptances. These investments are authorized, under the following condition:
• has a stated maturity of 270 days or fewer from the date of its
•
•
• issuance; will be, in accordance with its terms, liquidated in full at maturity; is eligible for collateral from borrowing from a Federal Reserve
Bank; and is accepted by a bank organized and existing under the laws of the United States or any state, if the short-term obligations of the bank, of a bank holding company of which the bank is the largest subsidiary, are rated not less the A-1 or P-1 or a equivalent rating by at least one nationally recognized credit rating agency
7.1.8 Regulated No-Load Money Market Mutual Funds. These investments are authorized, under the following conditions:
•
•
•
•
• the money market mutual fund is registered with and regulated by the Securities and Exchange Commission; the fund provides HCC with a prospectus and other information required by the Securities Exchange Act of 1934 or the Investment
Company Act of 1940; the fund has a dollar-weighted average portfolio maturity of ninety
(90) days or less; the investment objectives include the maintenance of a stable net asset value of one dollar ($1.00) per share; and the fund is continuously rated no lower than "AAA" or an equivalent rating by at least one nationally recognized rating service HCC may not invest funds under its control in an amount that exceeds 10% of the total assets of any individual money market mutual fund.
7.1.9
Regulated No-load Mutual Fund is an authorized investment if the mutual fund:
•
•
•
•
• is registered with the Securities and Exchange Commission; has an average weighted maturity of less than two years; is invested exclusively in obligations approved by this Policy; is continuously rated as to investment quality by at least one nationally recognized investment rating firm of not less than AAA or its equivalent. complies with the information and reporting requirements for investment pools as prescribed in the Public Funds Investment
Act.
HCC may not invest funds under its control in an amount that exceeds
15% of the total monthly average fund balance, excluding bond proceeds, reserves and debt service funds.
7.1.10 Commercial Paper with a stated maturity of 270 days or less from the date of issuance that either: is rated not less than A-1, P-1, or the equivalent by at least two nationally recognized credit rating agencies; or is rated at least A-1, P-1, or the equivalent by at least one nationally recognized credit rating agency and is fully secured by an irrevocable letter of credit issued by a bank organized and existing under the laws of the United States or any state thereof.
7.1.11
Obligations of States, Agencies, Counties, Cities, and other political subdivisions of any State having been rated as to investment quality by a
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nationally recognized investment rating firm and having received a rating of not less than “A” or its equivalent.
7.1.12
Securities Lending Program in accordance with Chapter 2256.0115 of the Public Funds Investment Act.
7.2 Investment Instruments NOT Authorized. State law specifically prohibits investment in the following securities:
7.2.1 Obligations whose payment represents the coupon payments on the outstanding principal balance of the underlying mortgage-backed security collateral and pay no principal.
7.2.2 Obligations whose payment represents the principal stream of cash flow from the underlying mortgage-backed security collateral and bears no interest.
7.2.3 Collateralized mortgage obligations that have a stated final maturity date of greater than ten years.
7.2.4
Collateralized mortgage obligations, the interest rate of which is determined by an index that adjusts opposite to the changes in a market index.
8. EFFECT OF LOSS OF REQUIRED RATING. The Investment Officer will take all prudent measures that are consistent with this Investment Policy to liquidate an investment that is downgraded to less than the required minimum rating.
9. DIVERSIFICATION. Diversification of investment instruments shall be utilized to avoid incurring unreasonable risks resulting from over-concentration of investments in a specific maturity, a specific issue, or a specific class of securities. With the exception of U.S.
Government securities, as authorized in this Policy, and authorized local government investment pools, no more than fifty percent (50%) of the total investment portfolio will be invested in any one security type or with a single financial institution. Diversification of the portfolio considers diversification by maturity dates and diversification by investment instrument.
9.1 the greater their price volatility. Therefore, it is HCC’ policy to concentrate its investment portfolio in shorter-term securities in order to limit principal risks caused by change in interest rates. HCC will attempt to match its investments with anticipated cash flow requirements. Unless matched to a specific cash flow,
HCC will not directly invest in securities maturing more than ten (10) years from the date of purchase. However, the above described obligations, certificates, or agreements may be collateralized using longer date instruments. HCC shall diversify the use of investment instruments to avoid incurring unreasonable risks inherent in over-investing in specific instruments, individual financial institutions or maturities. Maturity scheduling shall be managed by the Investment Officer so that maturities of investments shall be timed to coincide with projected cash flow needs.
The entire HCC portfolio, including funds at HCC’ depository bank, shall comprise one pooled fund group, and the maximum average dollar-weighted maturity allowed based on the stated maturity date for the portfolio is two (2) years or less. Investment maturities for debt service interest and sinking funds and/or other types of reserve funds, whose use is longer-term, may not exceed ten (10) years.
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9.2 Diversification by Investment Instrument. Diversification by investment instrument shall not exceed the following guidelines for each type of instrument:
Percentage of Portfolio
(Maximum)
U.S. Treasury Obligations
U.S. Government Agency Securities and Instrumentalities of Government-Sponsored Corporations
Authorized Local Government Investment Pools
Fully Collateralized Certificates of Deposit
Fully Collateralized Repurchase Agreements
SEC-Regulated No-Load Money Market Mutual Funds
SEC-Regulated No-Load Mutual Funds
Commercial Paper
Obligations of States, Agencies, Counties, Cities
100%
80%
100%
100%
10%
50%
50%
20%
20%
10.
AUTHORIZED FINANCIAL DEALERS AND INSTITUTIONS. Financial institutions
(federally insured banks) with and through whom HCC invests shall be state or national banks, which have main offices or a branch office in this state. No public deposit shall be made except in a qualified public depository as established by state laws. Broker/dealers authorized to provide investment services to HCC may include only those authorized by the
Board of Trustees. All banking services will be governed by a depository contract awarded by the Board of Trustees. In addition, the Chancellor or designee shall maintain a list of authorized security brokers/dealers, and investment pools that are authorized by the Board of Trustees.
HCC does business must supply the following as appropriate: (1) audited financial statements; (2) proof of National Association of Securities Dealers (NASD) certification; (3) proof of state registration; (4) completed broker/dealer questionnaire; (5) certification of having read HCC’ investment policy signed by a qualified representative of the organization, acknowledging that the organization has implemented reasonable procedures and controls in an effort to preclude imprudent investment activities arising out of investment transactions conducted between HCC and the organization.
10.2 Annual Review of Bidders Financial Conditions. An annual review of the financial condition and registration of qualified bidders will be conducted by the
Chancellor or designee. The review may include, but is not limited to, review of rating agency reports, review of call reports, and analyses of management, profitability, capitalization, and asset quality. Financial institutions and brokers/dealers desiring to conduct business with HCC shall be required to provide any financial data requested by the Investment Officer. Upon completion of the annual review by the Chancellor or designee, the financial institutions and brokers/dealers desiring to conduct business with HCC shall be approved by the
Board of Trustees.
Selection Criteria for federally insured financial institutions shall include the following: (1) the financial institution must be insured by the FDIC; (2) the financial institution must be incorporated under the laws of the State of Texas or of the United States of America; and (3) the financial institution must be located
44

within the corporate boundaries of HCC. Depositories located outside HCC limits, but within Harris County may be eligible to bid on investments, provided the financial institution maintains a place of business within the State of Texas and offers within the State the services required by the depository services contract; and the Board of Trustees, has adopted a written policy expressly permitting the consideration of applications received by HCC from a financial institution that is not doing business within HCC, after taking into consideration what is in the best interest of HCC in establishing a depository.
Monitoring Investments. The Investment Officer of HCC is responsible for monitoring the investments made by a financial institution and/or broker/dealer to determine that they are in compliance with the provisions of the Investment Policy.
11. DELIVERY VERSUS PAYMENT. It is the policy of HCC that all security transactions entered into with HCC shall be conducted on a “DELIVERY VERSUS PAYMENT” (DVP) basis through the Federal Reserve System, with the exception of investment pools and mutual funds. By doing this, HCC funds are not released until HCC has received, through the Federal Reserve wire, the securities purchased. HCC shall authorize the release of funds only after receiving notification from the safekeeping bank that a purchased security has been received in the safekeeping account of HCC. The notification may be oral, but shall be confirmed in writing.
12. SAFEKEEPING AND COLLATERALIZATION
12.1 Safekeeping. All securities owned by HCC shall be held by its safekeeping agent, except the collateral for bank deposits. The collateral for bank deposits will be held in a Federal Reserve Bank account in HCC’ name or a third-party bank, at
HCC’ discretion. Original safekeeping receipts shall be obtained and held by HCC.
HCC shall contract with a bank or banks for the safekeeping of securities either owned by HCC as part of its investment portfolio or held as collateral to secure time deposits.
12.2
Collateralization. Consistent with the requirements of the Public Funds
Collateral Act, it is the policy of HCC to require full collateralization of all HCC funds on deposit with a depository bank. In order to anticipate market changes and provide a level of security for all funds, the collateralization level will be 107% of market value of principal and accrued interest on the deposits or investments reduced to the extent that the deposits are insured by the Federal Deposit
Insurance Corporation (FDIC) unless otherwise noted in this section. Securities pledged as collateral shall be held in HCC’ name in a segregated account at the
Federal Reserve Bank or by an independent third party with whom HCC has a current custodial agreement. Securities pledged as collateral will consist of only
U.S. Treasuries and/or Government National Mortgage Association (GNMA). The agreement is to specify the acceptable investment securities as collateral, including provisions relating to possession of the collateral, the substitution or release of investment securities, ownership of securities, and the method of valuation of securities. The safekeeping agreement must clearly state that the safekeeping bank is instructed to release purchased and collateral securities to HCC in the event HCC has determined that the depository bank has failed to pay on any matured investments in certificates of deposit, or has determined that the funds of
HCC are in jeopardy for whatever reason, including involuntary closure or change of ownership. A clearly marked evidence of ownership, e.g., safekeeping receipt, must be supplied to HCC and retained by HCC. Any collateral with maturity over five (5) years must be approved by the Investment Officer before the transaction is initiated. Release of collateral or substitution of securities must be approved in
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writing by the Investment Officer. The total market value of the eligible security must be reported at least once each month to the Board.
12.2.1 HCC may accept the following securities as collateral for bank deposits
(V.T.C.A., Government Code, Section 2256.001, et. seq., formerly Article
842a-2, Section 2, V.T.C.S., as amended);
•
•
•
•
•
•
FDIC coverage;
U.S. Government securities; including bonds, certificates of indebtedness, or Treasury Notes of the United States, or other evidence of indebtedness of the United States that is guaranteed as to principal and interest by the United States,
State of Texas bonds; including obligations, the principal and interest on which, are unconditionally guaranteed or insured by the State of Texas,
Bonds issued by other Texas governmental entities (City, County, school district, or special districts) with a remaining maturity of twenty (20) years or less. Bonds must be (and must remain) investment quality: that is, with a rating of at least "A" or its equivalent; or
A surety bond that meets the requirements of the Public Funds
Investment Act.
Other obligations, the principal and interest of which are unconditionally guaranteed or insured by, or backed by the full faith and credit of the State of Texas or the United States or their respective agencies and instrumentalities.
12.2.2 For certificates of deposit and other evidences of deposit, collateral shall be at 102% of market or par, whichever is lower. The market value of collateral will always equal or exceed the principal plus accrued interest of deposits at financial institutions.
12.2.3 Financial institutions with whom HCC invests or maintains other deposits, shall provide monthly, and as requested by the Investment Officer, a listing of the collateral pledged to HCC, marked to current market prices. The listing shall include total pledged securities itemized by name, type, description, par value, current market value, maturity date, and Moody's or Standard & Poor's rating, if applicable. HCC and the financial institution shall jointly assume the responsibility for ensuring that the collateral is sufficient.
12.2.4 Collateralized Deposits. Consistent with the requirements of State law,
HCC requires all bank deposits to be federally insured or collateralized with eligible securities. Financial institutions serving as HCC depositories will be required to sign a "Depository Agreement" with HCC and HCC’ safekeeping agent. The collateralized deposit portion of the Agreement shall define
HCC’ rights to the collateral in the event of default, bankruptcy, or closing and shall establish a perfected security interest in compliance with Federal and State regulations, including:
•
•
• the Agreement must be in writing; the Agreement has to be executed by the Depository and HCC contemporaneously with the acquisition of the asset; the Agreement must be approved by the Board of Directors of the
Loan Committee of the Depository and a copy of the meeting minutes must be delivered to HCC; and,
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• the Agreement must be part of the Depository's "official record" continuously since its execution. the Investment Officer shall compare yields on potential investments to yields on US Treasury Bills and Notes, money market accounts at HCC’ depository bank, and local government pools. Three competitive bids will be obtained for all purchases of U.S. Government Agency
Securities and Instrumentalities of Government-Sponsored
Corporations, Fully Collateralized Repurchase Agreements,
Commercial Paper and Obligations of States, Agencies, Counties,
Cities.
HCC recognizes that a competitive bid process is not always necessary or is not always in the best interest of HCC. On these occasions, the
Investment Officers are authorized to purchase a security without seeking a competitive bid. The following are three occasions that are authorized:
1.
Market conditions are changing rapidly
2.
The security is a “new issues” that is still in the primary market
3.
A specific type of security, maturity date, or rate or return is sought that may not be immediately available.
13. PERFORMANCE. HCC’ investment portfolio will be managed in accordance with the parameters specified within this policy. The portfolio shall be designed with the objective to obtain a market rate of return on investments commensurate with investment risk constraints and cash flow requirements of HCC.
14. REPORTING. The Chancellor or designee shall submit a signed quarterly investment report that summarizes the investment strategies employed in the most recent quarter, and describe the portfolio in terms of investment securities, maturities, risk characteristics, and shall explain the total investment return for the quarter.
Annual Report. The reports prepared by the Chancellor or designee shall be formally reviewed at least annually by an independent auditor and the result of the review shall be reported to the Board of Trustees by that auditor.
Methods. The quarterly investment report shall include a succinct management summary that provides a clear picture of the status of the current investment portfolio and transactions made over the past quarter. This management summary will be prepared in a manner, which will allow HCC to ascertain whether investment activities during the reporting period have conformed to the investment policy. The report will be prepared in compliance with generally accepted accounting principles. The report will be provided to the
Board of Trustees. The report will include the following:
14.2.1 A listing of individual securities held at the end of the reporting period.
This list will include the name of the fund or pooled group fund for which each individual investment was acquired;
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14.2.2. Unrealized gains or losses resulting from appreciation or depreciation by listing the beginning and ending book and market value of securities for the period. Market values shall be obtained from financial institutions or portfolio reporting services independent from the broker/dealer from which the security was purchased;
14.3.3 Additions and changes to the market value during the period;
14.3.4 Fully accrued interest for the reporting period;
14.3.5 Average weighted yield to maturity of portfolio on entity investments as compared to applicable benchmarks;
14.3.6 Listing of investments by maturity date;
14.3.7 The percentage of the total portfolio which each type of investment represents; and
14.3.8 Statement of compliance of HCC’ investment portfolio with State Law and the investment strategy and policy approved by the Board of Trustees.
15. INVESTMENT POLICY ADOPTION AND AMENDMENT. HCC’ Investment Policy is adopted by resolution of the Board of Trustees only. It is HCC’ intent to comply with state laws and regulations. HCC’ written policies and procedures for investments are subject to review not less than annually to stay current with changing laws, regulations and needs of HCC. The Board of Trustees must adopt a written instrument that it has reviewed the Investment Policy and investment strategies and the written resolution so adopted shall record any changes made to the Investment Policy or strategies.
48

Debt Investments >1 Year:
U.S. Government Agency
Investment Held in Trust
Book Value
666,435
11,450,909
Total Debt >1 Year 12,117,344
Short Term Investments:
C.D.s/B.A.s 5,250,000
TexPool 68,993,389
Other Money Market Funds &
Pools
502,644
Bank Deposits (High Yield
Savings)
153,256,494
Cash Held at Bank
Other (list)- Lone Star
Total Short Term Debt
10,609,595
1,582,519
240,194,641
Market Value
670,948
11,450,909
12,121,857
5,250,000
68,993,389
502,644
153,256,494
10,609,595
1,582,519
240,194,641
TOTAL INVESTMENTS: $252,311,985 $252,316,498
1. Houston Community College DOES NOT employ outside investment advisors or managers.
2. Houston Community College does not use soft dollar arrangements.
3. Houston Community College is not carrying any investment which is associated with an independent endowment or foundation.
49

1.
Contract Award
A response to the solicitation is an offer to contract with Houston Community College (“HCC”) based on the terms and conditions contained therein. Proposals do not become contracts until they are accepted by HCC through issuance of written purchase orders, a contract signed by both parties, or other duly executed documents. The general terms and conditions in this
Attachment No. 3, the applicable requirements and provisions of the proposal, and other provisions required by HCC shall be included in any resulting contract.
2.
Contract Term
The contract term will be for two (2) years, December 1, 2010 through November 30, 2012 with an option to renew no greater than two (2) additional two-year terms. HCC reserves the right to exercise such renewal options at its sole discretion. All contract renewals or extensions may be subject to approval by the Board of Trustees.
3.
Interpretation, Jurisdiction and Venue
The Contract shall be construed and interpreted solely in accordance with the laws of the State of Texas, without regard to its choice of law provisions. Venue of any suit, right or cause of action arising under or in connection with the contract shall be exclusively in a court of competent jurisdiction located in Harris County, Texas.
4.
Compliance with Laws
The selected contractor shall give all notices and comply with all Federal, State of Texas and local laws. Upon request, the selected contractor shall furnish to HCC certificates of compliance with all such laws.
5.
Taxes
HCC is tax exempt as a governmental subdivision of the State of Texas under Section 501C (3) of the Internal Revenue Code. Limited Sales Tax Number: 1-74-1709152-1. The contract shall not contain any requirement for HCC to pay sales or other taxes from which it is exempt under applicable law.
6.
Termination for Convenience
HCC may, at its option and discretion, terminate the resulting contract for convenience and, at its option and discretion, may reduce the statement of work or other requirements of the contract at any time, without any default on the part of HCC or the contractor, by giving ninety
(90) calendar days written notice thereof to the selected contractor.
7.
Termination for Default
HCC may terminate the contract immediately for default, by giving written notice thereof to the contractor, if the contractor fails to execute the work properly; performs in a manner that is unsatisfactory to HCC, breaches any terms, conditions, covenants, or provisions of the contract or otherwise fails to meet its obligations under the contract. In the event of termination for default, HCC shall have against the contractor, all remedies provided by law and equity. HCC, in its discretion, may include a provision granting the contractor a reasonable opportunity to cure contractor’s default depending on the nature of the breach or default.
8.
Third Party Rights
The resulting contract shall contain the following provision: Nothing in this Contract, whether express or implied, will be construed to give any person or entity (other than the parties hereto and their permitted successors and assigns) any legal or equitable right, remedy, or claim under or in respect of any terms or provisions contained in this Contract or any standing or
50

authority to enforce the terms and provisions of this Contract. Nothing contained herein shall be construed to or operate to create any rights in any person, party, or entity who is not a party to this Contract including, but not limited to, any rights in the nature of a third-party beneficiary.
9.
Ethics Conduct
Any breach of any HCC ethics policies, rules or regulations; any violation of any ethics laws or prohibitions; and any direct or indirect actions taken to unduly influence competitive processes, to circumvent equal consideration for competitive proposers, or to disregard ethical and legal trade practices will disqualify vendors and contractors from current and future consideration for participation in HCC solicitations, proposal awards, orders and contracts.
10.
Conflict of Interest
HCC expects the Contractor to comply with Chapter 176 of the Texas Education Code and that failure to comply is grounds for termination of the Contract.
11.
Small Business Development Program (SBDP)
To the extent required by the solicitation, the contract shall require the selected contractor to agree to attain small business participation goal or target set forth in the solicitation. The contractor further shall agree to enter into agreements for the Work identified in Attachment 6 of the solicitation, entitled Contractor and Subcontractor/Supplier Participation. The subcontracting goal applies to all vendors regardless of their status. The contractor’s failure to comply with the aforementioned small business participation provisions may result in:
• Withholding of payment until such compliance is achieved or a waiver of the provisions is provided by HCC.
• Revocation of any benefits and incentives provided under the program or suspension or termination of the contract in whole or in part.
12.
Small Business Compliance
The contract shall require the contractor meet with the HCC Buyer and the HCC Small Business
Representative at the 50% and 75% completion phases/dates of the contract, to verify small business participation activity and to ensure compliance with the small business goal stated in the contract, if any.
13.
Prime Contractor/Contract for Services
If the resulting contract is for services, the contract shall require that the contractor perform a minimum of 30% of the work with its labor force or demonstrate management of the work to the satisfaction of HCC.
14.
Changes
HCC shall have the right, at any time, to make changes within the scope of the contract. If such change causes a material increase in the contractor’s cost and/or the time for performance, the contractor shall so notify HCC in writing within ten (10) calendar days from the date of the contractor’s receipt of the notice of change, and an equitable adjustment in the price and/or the time of performance shall be mutually agreed upon between the parties. No such change shall be effective in the absence of express written acceptance and direction of
HCC. Notwithstanding the foregoing, any increase in the cost or price under the contract of
$50,000 or more shall require approval by the HCC Board of Trustees before effective.
15.
Insurance Requirements
The Contractor agrees to comply with the insurance requirements contained in Exhibit I.
16.
Indemnification
The Contractor shall indemnify, defend and hold HCC, its agents, employees, trustees and other officers harmless from any and all losses, damages, harm of any type or character
(including attorney's fees and costs of suit) regardless of the nature or theory of the claim,
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whether negligence, contractual, extra contractual, or otherwise arising from or by reason of any act or omission of the contractor, its agents, servants, officers, directors and employees in the performance of the contract.
17.
Independent Contractor
It is agreed and understood that the contractor shall be deemed to be an independent contractor in all its operations and activities hereunder; that the employees furnished by the contractor to perform the services required by the contract shall be deemed to be contractor’s employees or independent subcontractors; that contractor’s employees shall be paid by the contractor; that contractor and its employees shall be responsible for all obligations and reports covering social security, unemployment insurance, income tax, and other reports and deductions required by State and Federal law. The contractor shall indemnify, defend, and hold HCC, its trustees, officers, employees, agents, and representatives harmless from any claims relating to the payment of salary, compensation, benefits, worker's compensation, or taxes to contractor's employees or agents
18.
Assignment
The contractor may not assign or transfer any of its rights, duties or obligations under this
Agreement, in whole or in part, without the prior written consent of HCC. This contract shall inure to the benefit of, and be binding upon, the parties hereto and their respective successors and permitted assigns.
19.
Notices
All notices by either party to the other shall be in writing, delivered personally, by certified or registered mail, return receipt requested, or by overnight courier, and shall be deemed to have been duly given when delivered personally or when deposited in the United States mail, postage prepaid addressed as follows:
Houston Community College: Contractor:
Procurement Operations (11 th Floor) _________________________
3100 Main Street _________________________
Houston, Texas 77002 _________________________
ATTN: Executive Director, Procurement Operations ATTN:_______________________
20.
Invoicing and Payment
The contractor shall submit an original invoice to the address shown below for the goods or services which have been inspected and accepted by HCC:
Houston Community College
Accounts Payable
P.O. Box 667460
Houston, Texas 77266-7460
Reference Project No. 10-36 and the applicable purchase order number.
Generally, payment will be made within thirty (30) calendar days after receipt of a properly prepared invoice or acceptance of the goods or services, whichever is later. Payment shall be considered made when HCC deposits the contractor’s payment in the mail or the date on which an electronic transfer of funds occurs.
21.
Appropriated Funds
The purchase of any service or product under the resulting contract beyond the initial contract period is contingent upon the availability of appropriated funds. HCC shall have the right to terminate the resulting contract at the end of the current or each succeeding fiscal year if funds are not appropriated by the HCC Board of Trustees for the next fiscal year that would permit continuation of the resulting contract. If funds are withdrawn or do not become available, HCC reserves the right to terminate the contract by giving the contractor a thirty
52

(30) day written notice of its intention to terminate without penalty or any further obligations on the part of HCC or the contractor. Upon termination of the contract, HCC shall not be responsible for any payment of any service or product received that occurs after the end of the current contract period – or the effective date of termination, whichever comes first. HCC’s fiscal year begins on September 1 and ends on August 31 st .
22.
Entire Agreement
The resulting contract and its accompanying exhibits contain the entire understanding of the parties regarding the services or materials and subject matter contained in the contract and supersedes all prior agreements, oral or written, and all other communications between the parties relating to the subject matter. This contract shall not be amended or modified, except by mutual written agreement between and signed by the parties to the contract.
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DESCRIPTION NAME PHONE EMAIL
54

Proposer __________________________________________________
Address _________________________________________________________
Phone _____________________ Fax Number _________________
In making a determination that a good faith effort has been made, HCC requires the Proposer to complete this form and submit supporting documentation explaining in what ways the Proposer has made a good faith effort to attain the goal. The Proposer will respond by answering “yes” or
“no” to the following and provide supporting documentation.
_____ (1) Whether the Proposer provided written notices and/or advertising to at least five
(5) certified small businesses or advertised in general circulation, trade association and/or small businesses focus media concerning subcontracting opportunities.
_____ (2) Whether the Proposer divided the work into the reasonable portions in accordance with standard industry practices.
_____ (3) Whether the Proposer documented reasons for rejection or met with the rejected small business to discuss the rejection.
_____ (4) Whether the Proposer negotiated in good faith with small businesses, not rejecting qualified subcontractors who were also the lowest responsive bidder.
NOTE: If the Proposer is unable to meet the solicitation goal or if any of the above items (1-4) are answered “no”, the Proposer must submit a letter of justification.
_________________________________ ________________________________
Title Signature of Proposer
_________________________________
Date
55

HCC Project No. 10-36
I, ___________________________________________________, _______________________________________________________, of
(Name) (Title)
____________________________________________________, certify that on the date(s) shown, the small businesses listed herein were contacted to solicit Proposals for Materials or Services to be used
(Name of proposer’s company) on Project #________
DATE CONTACTED
SMALL BUSINESS
Name
TELEPHONE NO. CONTACT PERSON MATERIALS OR SERVICES RESULTS
1.
2.
3.
4.
5.
6.
To the best of my knowledge and belief, said small business was unavailable for this solicitation, unable to prepare a proposal or prepared a proposal that was rejected for the reason(s) stated in the RESULTS column above.
The above statement is a true and accurate account of why I am unable to commit to awarding subcontract(s) or supply order(s) to the small business listed above.
NOTE: This form to be submitted with all Proposal documents for waiver of small business participation. (See Instructions to Proposers)
Signature: ______________________________________
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Note: Vendors are to complete this form along with a copy of the Contractor and Subcontractor/Supplier
Participation Form and return it in a separate envelope to:
Houston Community College
Procurement Operations/Small Business Representative
Post Office Box 667517
Houston, Texas 77266-7517
Ref: HCC Project No. 10-36
FIRM NAME: _________________________________________________________
FIRM ADDRESS: _________________________________________________________
_________________________________________________________
TELEPHONE: __________________________________________
FAX NUMBER: _________________________________________________
EMAIL ADDRESS: ___________________________________________
CONTACT PERSON’S NAME AND PHONE NO. ______________________________________________
SIGNATURE OF FIRM’S AUTHORIZED OFFICIAL: _____________________________________________
NAME AND TITLE (Type or Print): ________________________________________________________
COMPANY MAJORITY OWNERSHIP (Check one in each column)
ETHNICITY GENDER LOCATION
____ African American (AA)
____ Asian Pacific American (APA)
_____ Male
_____ Female
____ Houston (H)
_____ Texas (T)
(O)
____
____ Native American (NA)
____ Other (O) Specify_____________________
____ Public Owned (PO)
BUSINESS CLASSIFICATION
_____ DBE Disadvantaged Business Enterprise
_____ WBE Women Owned Business Enterprise
_____ HUB Historically Underutilized Business
Please provide information regarding certifying agency (if any)
_____ SB Small Business
_____ MBE Minority Business Enterprise
_____ Other: __________________
__________________
_________________________
_________________________
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HCC Project No./Title: Bank Depository Services/10-36
Proposer/offeror presents the following participants in this solicitation and any resulting Contract. All proposers / offerors, including small businesses submitting proposals as prime contractors, are required to demonstrate good faith efforts to include eligible small businesses in their proposal submissions.
CONTRACTOR Specify in Detail Type of Work to be Performed
Indicate below, the following:
Small Business (SB) and
Certification Status, if any
(i.e. SB – COH, METRO, etc.)
Percentage of
Contract Effort Price
Business Name:
Business Address:
Telephone No. :
Contact Person Name/E-mail:
SMALL BUSINESS SUBCONTRACTOR (S)
(Attach separate sheet if more space is needed.)
Business Name:
Business Address:
Telephone No. :
Contact Person:
Business Name:
Business Address:
Telephone No. :
Contact Person:
NON-SMALL BUSINESS SUBCONTRACTOR(S)
(Attach separate sheet if more space is needed.)
Business Name:
Business Address:
Telephone No. :
Contact Person:
Business Name:
Business Address:
Telephone No. :
Contact Person:
Business Name: __________________________ Submitted By (Name): ________________________________
Address:________________________________________________________________________________
Telephone/Fax:_________________________________________ Date:_______________________
Contractor ‘s Price/Total: $_______________________
Small Business
Subcontractor (s) Price/Total: $_______________________
Non-Small Business
Subcontractors Price/Total: $_______________________
Grand Total: $________________________
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The undersigned certifies that he/she will not discriminate against any employee or applicant for employment or in the selection of subcontractors because of race, color, age, religion, gender, national origin or disability. The undersigned shall also take action to ensure that applicants are employed, and treated during employment, without regard to their race, color, religion, gender, age, national origin or disability. Such action shall include, but shall not be limited to, the following: employment, upgrading or transfer, recruitment or recruitment advertising, layoff or termination, rates of pay or other compensation and selection for training, including apprenticeship.
Name/Title: ______________________________________________
(Type or Print)
Signature: _____________________________ Date: _________
Company Name: __________________________________________
(Type or Print)
Address: ________________________________________________
Telephone Number: _______________________________________
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A person or business entity entering into a contract with HCC is required by Texas Law to disclose, in advance of the contract award, if the person or an owner or operator of the business entity has been convicted of a felony. The disclosure should include a general description of the conduct resulting in the conviction of a felony as provided in section 44.034 of the Texas Education Code. The requested information is being collected in accordance with applicable law. This requirement does not apply to a publicly held corporation. an
Have you been convicted of a felony?
If a business entity:
YES or NO
YES or NO
Has any owner of your business entity been convicted of a felony? _______________
Has any operator of your business entity been convicted of a felony?______________
If you answered yes to any of the above questions, please provide a general description of the conduct resulting in the conviction of the felony, including the Case Number, the applicable dates, the
State and County where the conviction occurred, and the sentence.
I attest that I have answered the questions truthfully and to the best of my knowledge.
By: _______________________________ Date: ______________________
Name:______________________________________________________________
Title: ______________________________________________________________
Business Entity: ______________________________________________________
Signature of Firm’s Authorized Official: ____________________________________
State of
Sworn to and subscribed before me at_______________ ___________________
(City) (State)
this the ______________ day of _____________________, 2010
___________________________________
Notary Public for the State of: _______________________
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This company, contractor, or subcontractor agrees to refrain from discrimination in terms and conditions of employment on the basis of race, color, religion, sex, physical handicap, or national origin, and agrees to take affirmative action as required by Federal Statutes and Rules and Regulations issued pursuant thereto in order to maintain and ensure nondiscriminatory employment practices.
Signed: _________________________________________
Name of Company: _________________________________________
Address of Company: _________________________________________
State of
Sworn to and subscribed before me at __________________________ _________,
(City) (State) this the ___________________day of _____________________________, 2010.
___________________________________
Notary Public for the State of: ______________________
61

FIRM NAME: _______________________________________________________________
FIRM ADDRESS: _________________________________________________________
_________________________________________________________
TELEPHONE: ___________________________________
FAX NUMBER: ___________________________________
EMAIL ADDRESS: _____________________________
CONTACT PERSON’S NAME AND PHONE NO. (Type or Print):
_________________________________________________________________________
SIGNATURE OF FIRM’S AUTHORIZED OFFICIAL: ___________________________________
NAME AND TITLE (Type or Print): ______________________________________________
Do you or any officer, partner, owner, sales representative and/or spouse work for Houston
Community College? _________ Yes _________ No
If yes, please specify: ________________________________________________________
State in which your home office / headquarters is located? ______________
If headquarters is located out of state, does that state have preferential treatment on Proposals? ______
If yes, list percentage.____________%
Name of Financial Institution __________________________ Contact Person _________________
__________________________
Please indicate how you became aware of this procurement? Source: ________________________
Example: Newspapers (Chronicle, La Informacion, Voice of Asia, African American News, etc.)
Houston Minority Business Council, HCC Website, Chamber of Commerce, etc.)
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Business Questionnaire (cont’d)
TYPE OF ORGANIZATION
_____ Individual
_____ Partnership
_____ Sole Proprietorship
_____ Corporation, Incorporated in ________
Federal Employer Identification Number __________________________
(Note: please refer to Attachment No. 14, Vendor Application Instructions)
How long in business under present name ____________________________
Number of persons now employed ________________________
BUSINESS CLASSIFICATION
_____ DBE Disadvantaged Business Enterprise
_____ WBE Women Owned Business Enterprise
_____ HUB Historically Underutilized Business
_____ SB Small Business
_____ MBE Minority Business Enterprise
_____ Other: __________________
* HCC is an equal opportunity / educational institution, which does not discriminate on the basis of race, religion, national origin, gender, age or disability. HCC encourages small and disadvantaged businesses to seek procurement opportunities.
REFERENCES
List three references (local or otherwise) which have been or are now your customer and at least one in which you have performed comparable work in quantity and scope to that specified in this solicitation.
Name of Firm Address Point of Contact Telephone #
1. ________________________________________________________________________________
2. ________________________________________________________________________________
3. ________________________________________________________________________________
State of
Sworn to and subscribed before me at __________________ _____________________
(City) (State)
this the _________________ day of ______________________________, 2010
Notary Public ___________________________________________ for the State of:__________________________________________
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The undersigned certifies that he/she has read, understands and agrees to be bound by the small business provisions set forth in this Solicitation. The undersigned further certifies that he/she is legally authorized to make the statements and representations in the Solicitation and that said statements and representations are true and accurate to the best of his/her knowledge. The undersigned will enter into formal agreement(s) for work identified on the CONTRACTOR AND SUBCONTRACTOR
PARTICIPATION form conditioned upon execution of a contract with HCC. The undersigned agrees to attain the small business utilization percentages of the total offer amount as set forth below:
Small Business Participation Goal = BEST EFFORT
The undersigned certifies that the firm shown below has not discriminated against any small business or other potential subcontractor because of race, color, religion, gender, age, veteran’s status, disability or national origin, but has provided full and equal opportunity to all potential subcontractors irrespective of race, color, religion, gender, age, disability, national origin or veteran status.
The undersigned understands that if any of the statements and representations are made knowing them to be false or there is a failure to implement any of the stated commitments set forth herein without prior approval of HCC’s Chancellor or the duly authorized representative, the Proposer may be subject to the loss of the contract or the termination thereof resulting from this proposal and could be ineligible for future HCC contract awards.
Signature _______________________________________________________
Title ____________________________ Date of Signing _________________
Firm Name _______________________________________________________
Address __________________________________________________________
_________________________________________________________________
Telephone Number ____________________________
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The Houston Community College Procurement Operations department has developed an online vendor application. This is designed to allow firms or individuals that are interested in doing business with HCC to register online and become part of our vendor database. Once registered, you will receive a password and personal login information that will allow you to modify your vendor information anytime a change occurs with your company. You will have the flexibility to add or delete commodity lines, update phone numbers and contact information, etc. This database will allow HCC to notify, via email, all companies that match the desired commodity criteria for procurement opportunities within Houston Community College. What a great way to never miss out on an HCC bid or proposal opportunity again.
Please take a moment to go to the Houston Community College Procurement Operations department website and register as a vendor. The website address to access the vendor registration form is http://HCC.aecglobal.com/Supplier_Registration_Form.asp
Once you have completed your application, please print out a copy of the completed application and submit it with your completed proposal package. If you do not have internet access you are welcome to use a computer at any HCC library to access the website and register.
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The following insurance coverage and limits listed herein are the minimum that the Contractor/Vendor is required to carry during performance of the contract for:
Project Title: Bank Depository Services
Project Number: 10-36
1. Commercial General Liability for Bodily Injury / Property Damage Limits:
A
B. Products / Completed Operations
C.
D.
$1,000,000.00 CSL
$2,000,000.00 CSL
$2,000,000.00 CSL
E. Fire, Lightning or Explosion
Medical
2. Automobile Liability:
Bodily Injury/Property Damage
$1,000,000.00 CSL person
$1,000,000.00 CSL
3. Professional Liability
Professional liability coverage is required when a professional liability exposure is present. A minimum limit of $5,000,000 CSL will be required.
4. Cybernet Liability $1,000,000.00 CSL
5. Fiduciary Liability $1,000,000.00 CSL
6. Umbrella Liability:
Umbrella liability may be required with a minimum limit of $5,000,000 CSL.
7. Endorsements
The following endorsements and other stated information is required on the original certificate of insurance:
A. 90-Day Notice of Cancellation;
B. Houston Community College (HCC) to be named as Additional Insured on all policies except
Workers’ Compensation;
C. Waiver of Subrogation on all policies;
D. The assigned project number and/or purchase order number.
8. Submission of Certificate of Insurance:
The original certificate of insurance, indicating the coverage, limits and endorsements stated herein, shall be furnished to HCC within fourteen (14) calendar days of the HCC Board of
Trustees approval of the contract award. The Contract will not be awarded until after receipt of the proper certificate of insurance.
Mail the original certificate of insurance to:
Operations
Houston Community College
PO Box 667517 (MC 1118)
ATTN:
Procurement
Houston, TX 77266-7517
Note: CSL denotes “Combined Single Limit”
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67

DISCLOSURES
FINANCIAL INTERESTS AND POTENTIAL CONFLICTS OF INTERESTS
Texas Local Government Code Chapter 176 requires that vendors desiring to enter into certain contracts with a local governmental entity must disclose the financial and potential conflict of interest information as specified below.
Vendor shall disclose the financial interest and potential conflict of interest information identified in
Sections 1 through 3 below as a condition of receiving an award or contract. Submit this information along with your bid, proposal, or offer. This form must be received by HCC Office of Systemwide
Compliance before the vendor’s bid, proposal, or offer will be considered received or evaluated.
Completed forms must be NOTARIZED and delivered to:
Houston Community College
Attn: Procurement
With to:
Houston Community College
Attn: Office of System-wide Compliance, Compliance Officers
This requirement applies to contracts with a value exceeding $50,000.
Section 1 - Disclosure of Financial Interest in the Vendor a.
If any officers or employees of HCC (“individuals”) have one of the following financial interests in the vendor (or its principal) or its subcontractor(s), please show their name and address and check all that apply and (include additional documents if needed):
Name:______________________________________________
Address:____________________________________________
Ownership interest exceeding 10% (____)
Ownership interest exceeding $15,000 or more of the fair market value of vendor
(____)
Distributive Income Share from Vendor exceeding 10% of individual’s gross income
(____)
Real property interest with fair market value of at least $2,500 (____)
Person related to or married to individual has ownership or real property interest in Vendor
(____)
No individuals have any of the above financial interests
(If none, go to Section 2)
(____) b.
For each individual named above, show the type of ownership/distributable income share: sole proprietorship ___ stock ___ partnership ____ other (explain)________________________________________ c . For each individual named above, show the dollar value or proportionate share of the ownership interest in the vendor (or its principal) or its subcontractor (s) as follows:
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If the proportionate share of the named individual(s) in the ownership of the vendor (or its principal) or subcontractor of vendor is 10% or less, and if the value of the ownership interest of the named individual(s) is $15,000 or less of the fair market value of vendor, check here (___).
If the proportionate share of ownership exceeds 10%, or the value of the ownership interest exceeds $15,000 of the fair market value of vendor, show either: the percent of ownership ____________%,or the value of the ownership interest $______________.
Section 2 - Disclosure of Potential Conflicts of Interest
For each of the individuals having the level of financial interest identified in Section 1 above, and for any other HCC individual not identified in Section 1 above check "Yes" or "No" to indicate which, if any, of the following potential conflict of interest relationships apply. If "Yes," please describe (use space under applicable section-attach additional pages as necessary). a. Employment, currently or in the previous eighteen (18) months, including but not limited to contractual employment for services for vendor.
Yes ____ No ____
____________________________________________________________________________________
____________________________________________________________________________________
____________________________________________________________________________________ b. Employment of individual’s spouse, father, mother, son, or daughter, including but not limited to contractual employment for services for vendor in the previous eighteen (18) months.
Yes ____ No ____
____________________________________________________________________________________
____________________________________________________________________________________
____________________________________________________________________________________
Section 3- Disclosure of Gifts
For each of the individuals having the level of financial interest identified in Section 1 above, and for any other HCC individual not identified in Section 1 above check "Yes" or "No" to indicate which, if any, of the following potential conflict of interest relationships apply. If "Yes," please describe (use space under applicable section-attach additional pages as necessary).
a. Received a gift from vendor (or principal), or subcontractor of vendor, of $250 or more within the preceding 12 months.
Yes ____ No ____
____________________________________________________________________________________
____________________________________________________________________________________
____________________________________________________________________________________ b. Individual’s spouse, father, mother, son, or daughter has received a gift from vendor (or principal), or subcontractor of vendor, of $250 of more within the preceding 12 months.
Yes ____ No ____
____________________________________________________________________________________
____________________________________________________________________________________
____________________________________________________________________________________
Section 4- Other Contract and Procurement Related Information
Vendor shall disclose the information identified below as a condition of receiving an award or contract.
This requirement is applicable to only those contracts with a value exceeding $50,000. You must submit this information along with your bid, proposal, or offer.
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a. Vendor shall identify whether vendor (or its principal), or its subcontractor(s), has current contracts
(including leases) with other government agencies of the State of Texas by checking:
Yes No b. If "yes" is checked, identify each contract by showing agency name and other descriptive information such as purchase order or contract reference number (attach additional pages as necessary). c. Vendor shall identify whether vendor (or its principal) or its subcontractor(s) has pending contracts
(including leases), bids, proposal, or other ongoing procurement relationships with other government agencies of the State of Texas by checking:
Yes No d.
If "yes" is checked, identify each such relationship by showing agency name and other descriptive information such as bid or project number (attach additional pages as necessary).
This disclosure is submitted on behalf of:
_________________________________________________________________________
(Name of Vendor)
Certification . I hereby certify that to the best of my knowledge and belief the information provided by me in this disclosure statement is true and correct. I understand that failure to disclose the information requested may result in my bid, proposal, or offer, being rejected, and/or may result in prosecution for knowingly violating the requirements of Texas Local Government Code Chapter 176 . I understand that it is my responsibility to comply with the requirements set forth by HCC as it relates to this disclosure. I also understand that I must submit an updated disclosure form within seven (7) days of discovering changes in the significant financial interests of the individuals I identified in Section 1 of this disclosure or if individuals that were not identified, later receive a financial interest in my company or a subcontractor of my company.
Official authorized to sign on behalf of vendor:
Name (Printed) __________________________ Title_____________________________
Signature_______________________________ Date____________________________
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AFFIX NOTARY SEAL ABOVE
Sworn to and subscribed before me, by the said _________________________, this the ______ day of ________________, 20____, to certify which, witness my hand and seal of office.
"NOTE: RESPONDENT MUST COMPLETE THE ABOVE “DISCLOSURE OF FINANCIAL INTERESTS
AND POTENTIAL CONFLICTS OF INTERESTS" FORM. FAILURE TO COMPLETE AND RETURN
THIS FORM WITH YOUR OFFER MAY RESULT IN YOUR OFFER BEING CONSIDERED AS "NON-
RESPONSIVE" TO THIS SOLICITATION."
For assistance with completing this form, please contact the Office of System-wide Compliance at (713)718-8233 or 8295.
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Note: (Attachment No. 1 of this solicitation may become Exhibit A in the resulting contract.)
Note: (Attachment No. 2 of this solicitation may become Exhibit B in the resulting contract.)
Note: (Attachment No. 2.1 of this solicitation may become Exhibit C in the resulting contract.)
Note: (Attachment No. 2.2 of this solicitation may become Exhibit D in the resulting contract.)
Note: (Attachment No. 2.3 of this solicitation may become Exhibit E in the resulting contract.)
Note: (Attachment No. 3 of this solicitation may become Exhibit Fin the resulting contract.)
Note: (Attachment No. 4 of this solicitation may become Exhibit G in the resulting contract.)
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Note: (Attachment No. 9 of this solicitation may become Exhibit H in the resulting contract.)
Note: (Attachment No. 16 of this solicitation may become Exhibit I in the resulting contract.)
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Instructions: 1. This form shall be completed and signed by an officer of the subcontractor’s company for each payment received from the prime contractor and shall be returned to the prime contractor for its submission to HCC.
2. The prime contractor shall attach this completed form to each invoice for payment submitted to HCC/Acct. Dept.
PROJECT NO./TITLE: __________________________________________________________
NAME OF SUBCONTRACTOR: _____________________________________________________________
ADDRESS: ________________________________________________________________
________________________________________________________________
I hereby certify that the above firm has received payment on _____________ from ________________________-
(Date) (Prime Contractor)
In the amount of $_____________ as full payment of our Invoice No. ______________ dated ________________ for work performed during _______________________ under Contract/Project No. ___________________
( Enter Time Period)
Signature: __________________________________
Name (Print or Type) : ________________________
Title: ______________________________________
Date: ______________________________________
Telephone: __________________________________
Rev. 3/31/08
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Project No./Title: __________________________________________________
Reporting Period: From __________________ To _______________________
Prime Contractor: __________________________________________________
Total Contract Amount (Prime Contractor): $ _____________________________
Instructions: This form shall be completed and signed by an officer of the prime contractor’s company and shall be attached to each invoice for payment submitted to HCC’s Accounting Dept.
List Subcontractor(s) name below
Total Subcontract
Amount
Amount Paid This Period Total Paid to Date
I hereby certify that __________________________________ has made timely payments from proceeds of prior payments, and will
(Prime Contractor) make payments within five (5) calendar days of receipt of funds now due from HCC to our subcontractor(s) in accordance with the contractual arrangements with them.
Signature: _______________________________________
Name (Print or Type): ________________________________
Title: _______________________________________
Date: _______________________________________
Telephone: _______________________________________
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